Public bug reported:

This bug appeared on laptop running:

Ubuntu Feisty 7.04
P4 3Ghz w/ HT
1GB Ram
ATI MOBILITY RADEON 9600 (M10)

After installing either open source or fglrx ATI drivers ubtuntu fails
to login showing only a blank tan screen after login window. After
adding a new user I find that the new user login works as opposed to
primary login username. And by editing user permissions have found that
only users without adminitstrator privilleges or those users with
administrator privilieges (but with the option to use sound devices
disabled) are actually able to login and get to the desktop.

** Affects: Ubuntu
     Importance: Undecided
         Status: New

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With DRI enabled ubuntu only logs in without sound enabled
https://bugs.launchpad.net/bugs/129023
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