hardy_gnome, can you please post the output of these commands:
Code:
lspci | grep VGA
lsmod | grep fglrx
Did you ever attempt to install restricted drivers? If so, how? Restricted Drivers Manager? EnvyNG? Manually?
Can you also post the output of
Code:
compiz --replace &
You can revert back to no desktop effects with
Code:
metacity --replace &