I started with a clean 12.10 install (not an upgrade)
My card is a Radeon HD 5450
First thing I done was to install Linux-source and Linux headers
sudo apt-get install linux-source
sudo apt-get install linux-headers-generic
I noticed that many with Nvidia cards were having to do this and am sure I saw mentioned some-where that it also helped ATI users.
Like everyone else if I installed either of the proprietary drivers after reboot I was able to login but lost unity.
One thing I did notice is that installing the driver did not install Catalyst control centre (not sure if it is the same for everyone else)
So I installed Synaptic package manager and installed fglrx-updates from there
Now the Catalyst control centre was installed.
Upon rebooting however instead of being able to login with no Unity the system was hanging at the splash screen.
So I applied nomodeset and this time it booted with Unity present
Here is the result of fglrxinfo
And here is what software sources says
With nomodeset applied I might not be getting the splash screen on boot up but fglrx-updates is working well. I would go as far as to say that it is performing better than it was in 12.04
More info
Grub offers me 2 kernels
3.5.0-18-generic
and
3.5.0-17-generic
The later one '18' is good, the older one '17' still loads without Unity
Hi I have the answere for all of you, the problem is 12.10 doesn't include the kernel headers for some reason. so when installing drivers run sudo apt-get install linux-headers-$(uname -r) you can do this before or after it doesn't mater. Once thats done reboot your system and enjoy!
Best Answer
This is a known problem with ATI drivers on Ubuntu 12.10 (see https://bugs.launchpad.net/fglrx/+bug/1068661/+index?comments=all). I got my hybrid graphics system working by following the instructions below:
How do I get AMD/Intel Hybrid Graphics drivers to work?
If you don't want to compile drivers, installing the
xserver-xorg-video-inteland one of thefglrxpackages from this PPA should work:https://launchpad.net/~andrikos/+archive/ppa/+packages?field.name_filter=&field.status_filter=published&field.series_filter=quantal