I tried to install the driver right off the ATI website, but ran into two issues so far.

If you run the actual ati*.run file, you'll get:

rjr162@rjr162-laptop:~/Desktop$ sudo ./ati*.run
Created directory fglrx-install.O16780
Verifying archive integrity... All good.
Uncompressing ATI Proprietary Linux Driver-8.532...............................
==================================================
 ATI Technologies Linux Driver Installer/Packager 
==================================================

Error: ./default_policy.sh does not support version
default:v2:i686:lib::none:2.6.27-7-generic; make sure that the version is being
correctly set by --iscurrentdistro


--iscurrentdistro doesn't affect the setup in any fashion, so I did 
./ati-driver-installer-8-9-x86.x86_64.run --extract
and played around with the scripts but still no go.

I don't get why people say the xorg version isn't supported... when you extract the file from ATI you clearly see this in the packages:
rjr162@rjr162-laptop:~/Desktop/test/packages$ ls
ATI  Debian  Fedora  Mandriva  RedFlag  RedHat  Slackware  SuSE  Ubuntu
rjr162@rjr162-laptop:~/Desktop/test/packages$ cd Ubuntu
rjr162@rjr162-laptop:~/Desktop/test/packages/Ubuntu$ ls
ati-packager.sh  ChangeLog  dists
rjr162@rjr162-laptop:~/Desktop/test/packages/Ubuntu$ cd dists
rjr162@rjr162-laptop:~/Desktop/test/packages/Ubuntu/dists$ ls
7.10  8.04  8.10  gutsy  hardy  intrepid  source
rjr162@rjr162-laptop:~/Desktop/test/packages/Ubuntu/dists$ cd intrepid
rjr162@rjr162-laptop:~/Desktop/test/packages/Ubuntu/dists/intrepid$ ls
10fglrx.in        compat                     fglrx-kernel-source.install.in  overrides                          xorg-driver-fglrx.default         xorg-driver-fglrx.links
acpi              control                    fglrx-kernel-source.postinst    README.Debian                      xorg-driver-fglrx-dev.install.in  xorg-driver-fglrx.manpages
amdcccle.desktop  copyright                  fglrx-kernel-source.prerm       replacements                       xorg-driver-fglrx-dev.links       xorg-driver-fglrx.postinst
amdcccle.kdelnk   dkms.conf.in               fglrx-modaliases.install        rules                              xorg-driver-fglrx.dirs            xorg-driver-fglrx.postrm
changelog.in      fglrx-amdcccle.install.in  modaliases                      xorg-driver-fglrx.atieventsd.init  xorg-driver-fglrx.install.in      xorg-driver-fglrx.preinst
rjr162@rjr162-laptop:~/Desktop/test/packages/Ubuntu/dists/intrepid$ cd ..
rjr162@rjr162-laptop:~/Desktop/test/packages/Ubuntu/dists$ cd 8.10
rjr162@rjr162-laptop:~/Desktop/test/packages/Ubuntu/dists/8.10$ ls
10fglrx.in        compat                     fglrx-kernel-source.install.in  overrides                          xorg-driver-fglrx.default         xorg-driver-fglrx.links
acpi              control                    fglrx-kernel-source.postinst    README.Debian                      xorg-driver-fglrx-dev.install.in  xorg-driver-fglrx.manpages
amdcccle.desktop  copyright                  fglrx-kernel-source.prerm       replacements                       xorg-driver-fglrx-dev.links       xorg-driver-fglrx.postinst
amdcccle.kdelnk   dkms.conf.in               fglrx-modaliases.install        rules                              xorg-driver-fglrx.dirs            xorg-driver-fglrx.postrm
changelog.in      fglrx-amdcccle.install.in  modaliases                      xorg-driver-fglrx.atieventsd.init  xorg-driver-fglrx.install.in      xorg-driver-fglrx.preinst
rjr162@rjr162-laptop:~/Desktop/test/packages/Ubuntu/dists/8.10$ 

By the looks of it the ATI driver has the support, but for some reason the uname -r doesn't meet the version responses the ATI driver is looking for... or am I missing something bigger here?