I have found that it is better to stick to the open source ati drivers, they even tend top work better than the ones provided by the ati site. Are you using xorg, or xfree86?
how about hw acceleration? i think it's still only possible with fglrx.although it doesn't work for me at the moment... for some strange reason, because all seems to be ok - modules, setup...
regards, -- Lubos _@_"