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0e1f616
(Get the code!)
I'm experiencing a similar problem, Intel E8400 and Asus 3850 video card, fglrx driver.
The ati driver works fine, installing the fglrx driver causes a black screen (and what looks like) a hard lock-up on logout, switch user, and when X is started. This is on Kubuntu 8.04.1 with all updates applied.