It seems it's apparently a well known issue that fglrx doesn't support 16 bit color depth:
http://odin.prohosting.com/wedge01/gentoo-radeon-faq.html#4_16bit
I guess as a workaround xserver could be configured to not try 16 bit when flgrx is loaded, however really the true fix is for AMD/ATI to add better support for 16 bpp.
It seems it's apparently a well known issue that fglrx doesn't support 16 bit color depth:
http:// odin.prohosting .com/wedge01/ gentoo- radeon- faq.html# 4_16bit
I guess as a workaround xserver could be configured to not try 16 bit when flgrx is loaded, however really the true fix is for AMD/ATI to add better support for 16 bpp.