KMS is Kernel Modesetting, ie programming the display hardware in the kernel driver (which comes up early in the boot sequence) rather than the X driver (which comes up relatively late and which takes turns owning hardware with the console driver).
Using the same xorg.conf with the open source and Catalyst drivers is not a good idea -- for the open source driver you should start with either *no* xorg.conf or a largely empty xorg.conf.


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