Gallium is not FGLRX <note to sabayon devs>

[AMD]

tester@sabayon ~ $ fglrxinfo
display: :0 screen: 0
OpenGL vendor string: X.Org
OpenGL renderer string: Gallium 0.4 on AMD JUNIPER
OpenGL version string: 3.0 Mesa 9.0.1

This is what I got after installing your driver.
That is not ATI FGLRX,it is the open driver.
Back to Debian the old linux that works
It odd aticonfig --initial say it worked but there is no xorg config file in /etc/xll
tester@sabayon ~ $ glxinfo
name of display: :0
display: :0 screen: 0
direct rendering: Yes
server glx vendor string: SGI
server glx version string: 1.4

[nachoig]

Try this:

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su

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echo "blacklist radeon" > /etc/modprobe.d/blacklist.conf

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eselect opengl set ati

Reboot

[beji]

To expand on nachoigs answer: Installing the ati-drivers package does not automatically enable it. You need to change your opengl-driver with

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eselect opengl set ati

.

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aticonfig --initial

works fine for me so I can't really help with that. Did you run it as su?