Comment 7 for bug 870560

I too can confirm this bug, running Xubuntu 11.10.
Perhaps it's somehow related to this bug? https://bugs.launchpad.net/ubuntu/+source/jockey/+bug/841462
The common error messages in jockey.log are "ERROR: xorg:fglrx_updates: get_alternative_by_name(fglrx-updates) returned nothing", and the aforementioned bug fix which I linked to mentions "Return the correct alternative when dealing with 'updates' driver flavours in get_alternative_by_name()." So get_alternative_by_name() could point to the culprit of the problem ...