That ATI driver doesn't appear to have any OpenGL 3.0 support as it is missing the extension required to create an OpenGL 3.0 context, GLX_ARB_create_context. Of course, I wouldn't expect it to be there as the specification was only completed on October 22, the day before NVIDIA released their OpenGL 3.0 driver.
strange, 177.61.02 does not want to install as it detects that i have a Xen kernel, but 177.80 says i do not have one and installs
Did you try
export IGNORE_XEN_PRESENCE=1
Awesome, now provide a driver that can be installed on any kernel and won't break with a switch between kernels, a true Linux kernel module that's actually modular, so normal users who don't understand the risk of installing the binary from Nvidia who then do a system update only to find their system totally hosed after it installed a newer kernel for them won't get fXXXed. Maybe the kernel module API needs some stabilization for that to happen, but regardless something needs to happen because it's a problem for many users.
Well Xserver 1.5 support for GeForce 5 and newer exits since end of may (173.14.xx) - ATI has a beta version since mid of october for Ubuntu. That's in best case 4 month after NV. That change was really more important. Smaller kernel ABI changes can be fixed manually, for bigger ones you need new drivers. For 2.6.28 take a look there:
http://www.nvnews.net/vbulletin/showthread.php?t=121790
Ubuntu Intrepid, and other distros, use DKMS to achieve this effect with the current nVidia drivers.
Catalyst 8.10 supports already a lot of OpenGL 3.0.
Catalyst 8.10 supports already a lot of parts of OpenGL 3.0.