Hi, Semi:
I just encountered the same problem as you on my desktop. If you installed the virtualization packages, you more than likely have a Xen kernel, which has its own devel package. Try installing kernel-xen-devel; Michael, could you update your script to specify that you might need the xen devel package? Thanks :]
EDIT Grrr. Apparently fglrx does not work with kernel-xen at ALL. The driver won't load because of missing symbols in the kernel. I guess you'll have to fall back to the regular kernel. ATI's drivers are so damn broken.


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