it's not the best or "indicated" way - but for a quick & dirty solution
U can install Envy. Envy will install last ATI driver - for the actual
driver the empty xorg.conf is a known issue - they repair this issue but
on fglrx 8.40.4 which can be installed only with Envy now.

Remember this is a complementary solution - expected solution is to find
fglrx 8.40.4 in Gutsy - also until fglrx 8.42 I think the problems will
persist.

It's about ATI driver - they move some development documentation under
open source so in the future we can expect true drivers - I mean better
drivers than in Windows world.

-- 
fglrx does not work
https://bugs.launchpad.net/bugs/123449
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