I have found a number of fixes for the problem of the ATI FGLRX Xserver issue.
My fix was to install the proprietary ATI/AMD FGLRX drivers and update my /etc/X11/xorg.conf file to the following:
Section "ServerLayout" Identifier "amdcccle Layout" Screen 0 "Default Screen" 0 0 EndSection
Section "Files" EndSection
Section "Module" Load "glx" EndSection
Section "Monitor" Identifier "Configured Monitor" EndSection
Section "Device" Identifier "Configured Video Device" Driver "fglrx" Option "EnableMonitor" "crt1,lvds,tv,tmds1,crt2,tmds2,cv,tmds2i" BusID "PCI:2:0:0" EndSection
Section "Screen" Identifier "Default Screen" Device "Configured Video Device" Monitor "Configured Monitor" DefaultDepth 24 EndSection
I have an ATI HD4850 card in PCIbus 2:0:0.
There are certain combinations of x86_64, mainboards, and ATI cards when using 4+GB of RAM that require you to manually configure the MTRRs on your system.
See http://ubuntuforums.org/showthread.php?p=6364262#post6364262 for details