Ok so I was asked to put on the oll thinking cap and solve the ATI / kernel 3.0 issue.
I did just that.
Please follow to the letter. This only works right one way.
1.a remove any installed ATI drivers (purge FGLRX) Be sure to deactivate the drivers via additional drivers for this to work.
1. install kernel 3.0 and required packages
http://launchpadlibrarian.net/77875558/linux-firmware_1.60_all.deb
https://launchpad.net/ubuntu/oneiric/+package/module-init-tools
http://launchpadlibrarian.net/77906594/linux-headers-3.0.0-9_3.0.0-9.14_all.deb
http://launchpadlibrarian.net/77913808/linux-headers-3.0.0-9-generic_3.0.0-9.14_amd64.deb
http://launchpadlibrarian.net/77913806/linux-image-3.0.0-9-generic_3.0.0-9.14_amd64.deb
2. now restart
3. now open ubuntu tweak and go to update manager , refresh and install ALL listed updates
4. now go to the package clean in ubuntu tweak
run the first 4 sections in there entirety (be sure to purge old kernels) this is a must
note: first 4 sections, No need to do ppa's - clear out - cache - configs - kernels - packages
5. now restart
6. Now go here and download the modified Cat 11.8 ccc and driver (use gdebi)
https://sourceforge.net/projects/pctosatidriver/files/ati%20driver%20pctos%203.0%20kernel/pc-trends-os-hybred%20fglrx_8.881-0ubuntu1_amd64/
7. now go to addition drivers and activate FGLRX (activates the drivers you just installed)
8. now restart and your done
please note that all prep is 100% required to work. Just installing drivers will result on a none bootable system.
2.6.38 kernels brake the FGLRX custom build process after all CUSTOM per 3.0 kernels lol
result