Well I had an updated version of fglrx installed (not from the repos) which worked fine before this update.
I tried to install from the repos but there were all kinds of errors, it also would not reinstall. I have finally managed to force uninstall the latest driver and reinstall the driver from the repos. I am now back in my system, working correctly.
I will avoid the latest fglrx until I can be certain that something in Ubuntu won't break it during the next update.
It therefore appears that something in xorg-server is incompatible with fglrx 8.881, in this version of Ubuntu at least.
Well I had an updated version of fglrx installed (not from the repos) which worked fine before this update.
I tried to install from the repos but there were all kinds of errors, it also would not reinstall. I have finally managed to force uninstall the latest driver and reinstall the driver from the repos. I am now back in my system, working correctly.
I will avoid the latest fglrx until I can be certain that something in Ubuntu won't break it during the next update.
It therefore appears that something in xorg-server is incompatible with fglrx 8.881, in this version of Ubuntu at least.