sudo apt-get remove fglrx
then for newest ati driver:
wget http://www2.ati.com/drivers/linux/ati-driver-installer-11-4-x86.x86_64.run
If you have a 64 bit system, then install this before anything:
sudo apt-get install ia32-libs
Once dowloaded right-click the .run file and set it to run as executable.
then.
cd /path_of_the_file
This is for 32 bit only:
sudo sh ./ati-driver-installer-11-4-x86.x86_64.run
This is for 64 bit only:
sudo sh ./ati-driver-installer-11-4-x86.x86_64.run --buildpkg Ubuntu/natty
sudo dpkg -i fglrx*.deb
Once it's done.
sudo aticonfig --initial -f
that's all you have to do.
Alternatively you can add this ppa.
sudo add-apt-repository ppa:ubuntu-x-swat/x-updates
sudo apt-get update
sudo apt-get install fglrx
I will conclude that this is a Gnome bug (which I have filed), since this works in Unity. Also, I have tried using the open source nouveau drivers (which properly support xrandr), and the same thing happens.
Best Answer
The steps that (eventually) worked for me on 11.10 (Oneiric) with a 1680x1050 22" and 1024x1280 19" (counter-clockwise ;)):
[Skip to important/troublesome steps in bold]
amdcccle(adminstrative)
(after experiencing the horrible crashing of this question), andLog-off and on and see if it sticks: if it doesn't (it didn't for me)
Open Terminal and
Your settings should stick now.
I would think that simply doing step 3 then
sudo rm /etc/X11/xorg.conf.ati
would work, but I'm not about to mess it up :).