Forgive me, but have you tried using Mesa 7.7 + Xorg 7.5 + 2.6.32 kernel + xf86-video-ati-9999 ? I'm getting great results. I'm using Sabayon Linux (gentoo based) have have added the x11 overlay and have been using the xf86-video-ati-9999 ebuild to stay on top of the git, and have found this combination to work better than I would have ever imagined! I'm sure the 2.6.23/24 kernel will be even better! Its crazy how well the drivers have progressed and cleaned up over time! I'm not sure why the last release is 6.12.4 though considering that its kinda an old release by now and they have a far better working version in git right now... I'm not ever going back to the fglrx drivers now.
(working on X200m (better than windoze),HD2600,HD3300,HD3870,HD4650) yeah, I know. I'm an ATI fanboy with too many ATI cards (and computers) and no Nvidia cards(except for my PS3

but that doesn't count).