Seams that you don't have the fglrx module...
First things first... just to check do "modprobe fglrx" as root ans check "dmesg" to verify how the module is loading...
Well, that loaded it.... but dmsg (grepped for fglrx) is loaded with errors. The biggest problem I've got here now is... I'm trying to do the support over the phone witha complete (albeit willing) Linux newbie... so I'm trying to dictate the instructiond over the phone. I'm tryign to get him to mail me the output... maybe I'll spot something in there :-( I told him to buy an nVidia card.... and he bought an ATI :-( I've never seen an ATI work right... sigh.. Anyway, now the driver line in xorg.conf says fglrx, fglrxinfo reports back the vendor renderer string and version as expected. glxinfo also reports back that the ATI driver is loaded.... but glxgears is sloooow and any gl game is so slow as to be unusable. So something is still not right. Not sure what though.... C.