The newly released Ubuntu 12.10 have several issue with the proprietary graphics drivers. The Nvidia graphics issue can be fixed by installing two dependency packages and I wrote a post on how to do it. But the ATI driver problem is not yet fixed.
I have two separate systems running ATI and Nvidia cards. You are lucky! From the beginning, I tried several things (suggested by Ubuntu forum users, Ask Ubuntu users and on the bug report) to fix the issue. Installed fglrx, fglrx-updates, installed linux-source and the linux-headers like the Nvidia fix, tried to install old drivers, tried several driver versions from the AMD website, tried GDM, tried Gnome Shell but nothing works.
The main issue is, if we install the proprietary drivers, after reboot, we’ll only see the wallpaper. The Unity will crash. The problem points to the Xserver. Some say that the new Xserver version is not supported by ATI. The open-source drivers work but they have several heating issues and system slowdowns. So, we really need to get the drivers fixed. AMD released a brand new driver yesterday. I tried it and it also failed.
Already I have opened two bug reports on Unofficial AMD Linux Bugzilla and on the Launchpad :
If you also have this issue, please go to the bug reports and report that you also have the issue and comment about what happens. More reports will motivate the developers to fix the issue soon. It will also give them more data to identify the real issue.
If somehow they fix the problem, or if someone find a workaround for the issue, I’ll surely post it in this site. So, stay subscribed.