Ubuntu – ATI proprietary drivers not working with an ATI Radeon HD 3400

I am using Lenovo Thinkpad laptop with ATI Radeon HD 3400 Series graphic card. I installed Ubuntu 11.10 64 bit today and tried to install proprietary drivers

1)Hence I installed proprietary drivers displayed on my system (through jockey) .Rebooted my system. Performance is better now but Still compiz is not working.

2)Then I tried the second driver available – 'post-release-updates' but couldn't install due to some error. Hence I opened synaptic and installed fglrx-updates and rebooted my system. Not much change and still compiz didnt work

3)Removed all these packages and downloaded the latest driver from ATI http://support.amd.com/us/gpudownload/linux/Pages/radeon_linux.aspx?type=2.4.1&product=2.4.1.3.42&lang=English and installed it and rebooted my system. This is worse as I dnt get even launcher or dash this time – I guess I am forcefully logged in to Ubuntu 2-D . Still compiz is not working

Am I doing something silly here ? Is any one facing similar issues with ATI ? Please help
Thanks.