NEW drivers for Karmic in PPA. Also check the update for mesa. Perhaps that's 
the solution. There's a note saying that this mesa for the R600 requires a 
different DRM libraries, which are not in the PPA. In my previous comment I 
pasted the exact text from the repo, so you can follow the link and test.
Hoping that helps you all.

-- 
X fails to start up after mesa+git update - gdm loops after logging in
https://bugs.launchpad.net/bugs/419126
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