Hi mate!
Sorry, been getting lost in all the posts and missed the question you asked about fglrx and ati graphicsdrivers.
the xorg.conf file stores all your settings for the video display and monitor configuration (as well as mouse / keyboard settings). Think of it as what you'd get if you didnt have the nice display menus on windows - they are frontend gui's for a config file somewhere in windows!
Unfortunately, in linux you have to edit this file manually
but thats linux for ya!
So make sure you back up your /etc/X11/xorg.conf before doing anything. Cause if you screw up this file you won't get the window manager (gnome in ubuntu) up and only had a dos-like terminal to do stuff with.
With regard fglrxconfig, this is ati's solution to "help" you configure xorg.conf to enable 3d acceleration. Its fairly straightforward, you can normally just use the default suggested options, but you will need to refer to your monitor manual to find out the horizontal and vertical refresh of your screen. This would be something done automatically in windows.
Ultimately, play around with the settings. If everything goes ****-up, delete your /etc/X11/xorg.conf and replace it with the BACKUP you made, and restart the system
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