I'm having the same problem with my 9700. System/Administration/Hardware 
Drivers is empty. Installing 
fglrx-driver causes the memory errors that were reported. I must say that this 
was working fine with hardy

$ apt-cache policy fglrx-kernel-source 
fglrx-kernel-source:
  Installed: (none)
  Candidate: 2:8.552-0ubuntu0.1
  Version table:
     2:8.552-0ubuntu0.1 0
        500 http://archive.ubuntu.com intrepid-proposed/restricted Packages
     2:8.543-0ubuntu4 0
        500 http://archive.ubuntu.com intrepid/restricted Packages

01:00.0 VGA compatible controller: ATI Technologies Inc RV350 [Mobility Radeon 
9600 M10]
        Subsystem: ASUSTeK Computer Inc. Device 1772
        Control: I/O+ Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- 
Stepping- SERR+ FastB2B- DisINTx-
        Status: Cap+ 66MHz+ UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- 
<TAbort- <MAbort- >SERR- <PERR- INTx-
        Latency: 64 (2000ns min), Cache Line Size: 64 bytes
        Interrupt: pin A routed to IRQ 11
        Region 0: Memory at d0000000 (32-bit, prefetchable) [size=128M]
        Region 1: I/O ports at d800 [size=256]
        Region 2: Memory at ff8f0000 (32-bit, non-prefetchable) [size=64K]
        Expansion ROM at ff8c0000 [disabled] [size=128K]
        Capabilities: <access denied>
        Kernel modules: radeonfb

-- 
r3xx Hardware does not work with fglrx [EPR#257839]
https://bugs.launchpad.net/bugs/284408
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