I got the new 8.6 ati driver and I'm having some serious problems with it. When I try to log in a get the following message:

Xlib: connection to "0.0" refused by the server
Xlib: Protocol not specified
And then I get back to logon screen. Any ideas?

I've tried "xhost +", but it didn't work. I've read that it may be something related to xauth, but I'm not sure.