ATI driver only works in Failsafe Gnome mode

[peahen]

Updated my T60 from Feisty (7.04) to Gusty (7.10) this morning. Perhaps it's not a good decision as updating has screwed up things a bit.

I re-installed the latest ATI driver (8.40), but only in Failsafe mode can this driver be properly loaded. In default Gnome mode, if I type top, it shows me "Xgl" instead of "Xorg". I suspect under default mode, a script is executed to override the ATI driver, but not sure where it is located/how to disable it.

Now every time of reboot I have to change it manually to the failsafe Gnome mode to load the ATI driver.

Any thoughts? Many thanks.