No U lucid, D squeeze, Fedora (since > 5 month) is waiting for Xorg 7.5+ support. It broke with Xserver 1.7. Nv binary for current cards basically always worked. Maybe U lucid release date will wake up ATI's deep sleep.
immediately since Xorg 7.5 became available (the rc, etc.) I upgraded and tested it & it didn't work so I added it to /etc/portage/package.mask (masked it & downgraded)
I don't know anymore which error message it was - that was a few months ago,
since then I've been using xorg-server 1.6.5