Comment 1 for bug 77939

This seems to be connected to #82195. I have got the same problem with similar hardware, although I don't know exactly since when the drivers stopped working properly since I rarely use 3d.
Please check what you get when trying to load fglrx manually: sudo modprobe fglrx

$ lspci | grep -i vga
01:05.0 VGA compatible controller: ATI Technologies Inc ATI Radeon XPRESS 200M 5955 (PCIE)

$ fglrxinfo
Xlib: extension "XFree86-DRI" missing on display ":0.0".
display: :0.0 screen: 0
OpenGL vendor string: Mesa project: www.mesa3d.org
OpenGL renderer string: Mesa GLX Indirect
OpenGL version string: 1.4 (1.5 Mesa 6.5.2)

$ sudo modprobe fglrx -v
install /sbin/lrm-video fglrx
FATAL: Error running install command for fglrx

$ uname -a
Linux 2.6.20-16-generic #2 SMP Thu Jun 7 20:19:32 UTC 2007 i686 GNU/Linux