There are other threads related to this question for Ubuntu 12.04, however THEY DO NOT APPLY TO 12.10. This is not a duplicate of another thread if the referenced thread doesn't answer the question asked.
Ubuntu – How to install the latest ATI Catalyst Video Drivers in Ubuntu 12.10 Quantal
12.10aticatalystdriversvideo
Best Answer
For the purpose of this question: Catalyst = fglrx = proprietary AMD/ATI display driver
The most problems people are having come from the fact that:
1. Ubuntu has moved to newer driver versions, that don't support some older ATI/AMD chips
2. Ubuntu has moved to newer Xorg versions
Symptoms:
No. 1 - 'not supported' errors / Jockey not detecting proprietary drivers valid for installation
No. 2 - some older ATI/AMD Catalyst versions won't install
Which all comes down to:
Your chip is no longer supported by the latest ATI/AMD catalyst display drivers (be it via manual install or from Ubuntu repositories)
Solution:
Check, what is the latest driver version that supports your chip and then proceed with the installation accordingly.
http://wiki.cchtml.com/index.php/Hardware (may be slightly outdated)
or
enter your graphic card details here:
http://support.amd.com/us/gpudownload/Pages/index.aspx
use terminal command to display information about your graphics
If the latest version for you is 12.6 => proceed as per https://askubuntu.com/a/201785/29347
Chips that are indicated 'legacy' (not supported for the latest Catalyst versions):
Try the PPA listed here How to install old AMD Catalyst 12.4 drivers on Ubuntu 12.10? You'll most probably get Catalyst 12.6
Chips that ARE supported in 12.10 / by the latest Catalyst drivers:
The installation should be accomplished as per What is the correct way to install proprietary ATI Catalyst Video Drivers (fglrx) directly from AMD?