STATUS: New Xorg version 1.7 (current in Sid): NO SUPPORT!! Do not upgrade Xorg if you use fglrx
Xorg version 1.6 requires 9-4 or greater, BUT: 9-4 supports only > hd2000 cards.
radeonhd in Sid/Xorg 1.6 now supports (2d) R7xx cards, and improved support for r4-6xx cards.
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The fglrx driver does not work with sidux kernels prior to 2.6.32. 
You can alternately also always install Debian/Liquorix kernels using smxi (Debian users). 
Currently tested methods: Debian/Ubuntu 2.6.26/32 + Liquorix 2.6.28/31/32 686/amd64 kernels:
1: Standard: current-fglrx (current-fglrx / sgfxi): 32 bit: WORKS; 64 bit: WORKS
2: Debian method (debian-fglrx / sgfxi -s): 32 bit: WORKS; 64 bit: WORKS
3: Fglrx latest, fglrx deb builder/installer (previous sgfxi default: sgfxi -F): Erratic.
2.6.31/2.6.32 - 9-10/9-11/9-12 work.
2.6.33 - 10-2 works.
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NEW: -D is the new option for build distro packages method (-F deprecated, -f no longer applies).
This means you CAN ONLY install to the currently running kerne, sorry.