Install Ubuntu ATI Drivers| fglrx direct from AMD

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Install ATI Video Driver

The following are instructions to install the latest ATI Catalyst Video Driver (fglrx) in Ubuntu 12.04 LTS. 

Proceed with caution, as manually altering packages and drivers in Terminal, especially when working as a super or sudo user, can have negative impacts on some or all of your installed packages and drivers.

If you are installing these drivers on a fresh install of Ubuntu you may ignore the first step of the instructions; Delete/Remove Existing Drivers.

Delete/Remove Existing Drivers

sudo sh /usr/share/ati/fglrx-uninstall.sh
sudo apt-get remove --purge fglrx fglrx_* fglrx-amdcccle* fglrx-dev*

You will need to install the following dependencies via Terminal.

sudo apt-get install build-essential cdbs fakeroot dh-make debhelper debconf libstdc++6 dkms libqtgui4 wget execstack libelfg0 dh-modaliases

64-bit ONLY

sudo apt-get install ia32-libs-multiarch i386 lib32gcc1 libc6-i386

To install the lastest ATI/AMD driver, Download the appropriate driver for your machine here from the AMD/ATI Website and then enter the following into the terminal (remember to navigate to where you extracted the driver to beforehand and make sure no other .run files exist in that folder):

sudo sh *.run --buildpkg Ubuntu/precise

If it is required, a package manager window will open and install some dependencies and after a while create the following four .deb packages:

fglrx_8.961-0ubuntu1_amd64.deb
fglrx-amdcccle_8.961-0ubuntu1_amd64.deb
fglrx-dev_8.961-0ubuntu1_amd64.deb

Note: It will also create a file called fglrx-installer_8.961-0ubuntu1_amd64.changes. If you wish you can read this file to know the changes that have been affected through AMD/ATI Catalyst and related information. To install the created .deb files, type:

sudo dpkg -i *.deb

Note: In case any of the packages are broken, open Synaptic Package Manager and go to Edit -> Fix Broken Packages. In case you are new to Ubuntu, broken here means that some dependent packages are not yet installed. Once you sort out the issue as indicated above through the Synaptic Package Manager, the problem of broken packages should be resolved.

sudo aticonfig --initial

Now go ahead and reboot your computer. If all is right, the fglrx driver that corresponds to AMD/ATI Catalyst will be installed and working on your system. To confirm the drivers are working open a terminal and type:

fglrxinfo

You should get an output similar to the following:

display: :0  screen: 0
OpenGL vendor string: Advanced Micro Devices, Inc.
OpenGL renderer string: ATI Radeon HD 4300/4500 Series
OpenGL version string: 3.3.11631 Compatibility Profile Context

Note: If you see any mention of MESA in the output, the fglrx drivers have not been installed correctly. See the troubleshooting section for more details You can make configuration changes through the AMD/ATI Catalyst Control Center. It can either be found in your Application menu or you can launch it through a terminal like this:

sudo amdcccle

Be aware that when you manually install fglrx, this can subtly break your system, since the packaging system isn't made aware of your changes. The Launchpad developers get many bug reports from users who do this and then later discover after a few upgrades that their system starts behaving weird because of those fglrx remnants.

Officially Supported (Catalyst & Open Source)

The following hardware is supported by current releases of the Catalyst/fglrx driver. Open source
drivers will work as well.

* CEDAR       Radeon HD 5450
* REDWOOD     Radeon HD 5550/5570/5670
* JUNIPER     Radeon HD 5730/5750/5770
* CYPRESS     Radeon HD 5830/5850/5870
* HEMLOCK     Radeon HD 5970
* PALM        Radeon HD 6250/6310 
* SUMO,SUMO2  Radeon HD 6370/6380/6400/6410/6480/6520/6530/6550/6620
* CAICOS      Radeon HD 6430/6450/6470/6490
* TURKS       Radeon HD 6570/6670
* JUNIPER     Radeon HD 6750/6770
* BARTS LE    Radeon HD 6790
* BARTS       Radeon HD 6850/6870
* CAYMAN      Radeon HD 6950/6970  (requires Catalyst 11.4b; open-source requires kernel 2.6.39)
* ANTILLES    Radeon HD 6990

Older RadeonHD (Catalyst Legacy 13.1 & Open Source)

* R600        Radeon HD 2900
* RV610/RV630 Radeon HD 2400/2600, 3000/3100/3200/3300, M71, M72, M74, M76
* RV620       Radeon HD 3450/3470, M82  
* RV635       Radeon HD 3650/3670, M86
* RV670       Radeon HD 3850/3870, M88
* RS780       Radeon HD 3100/3200/3300
* RS880       Radeon HD 4100/4200/4290
* RV710       Radeon HD 4350/4550/5145/530v/545v, M92
* RV730       Radeon HD 4650/4670/5165/550v/560v/565v, M96, M96-XT
* RV770       Radeon HD 4850/4870, M97, M98

Radeon (Catalyst <= 9.3 & Open Source)

* RS400/RS480 Radeon XPRESS 200(M)/1100 IGP
* R300        Radeon 9700PRO/9700/9500PRO/9500/9600TX
* R350        Radeon 9800PRO/9800SE/9800
* R360        Radeon 9800XT
* RV350       Radeon 9600PRO/9600SE/9600/9550, M10/M11
* RV360       Radeon 9600XT
* RV370       Radeon X300, M22
* RV380       Radeon X600, M24
* RV410       Radeon X700, M26 PCIE
* R420        Radeon X800 AGP
* R423/R430   Radeon X800, M28 PCIE
* R480/R481   Radeon X850 PCIE/AGP
* RS482       Radeon (Xpress) 200
* RV505       Radeon X1300, M52, M62
* RV515/RV550 Radeon X1400/X2100/X2300, M54, M64, All-In-Wonder 2006
* RV516       Radeon X1500
* R520        Radeon X1800, M58
* RV530/RV560 Radeon X1600/X1650/X1700/X2500, M56, M66
* RV570/R580  Radeon X1900/X1950, M68
* RS600/RS690 Radeon (Xpress) X1200/X1250/X1270
* RS740       Radeon (Xpress) 2100
* FireGL T2 (4154)
* FireGL V3100 (5B64)
* FireGL V3200 (3E54)
* FireGL V3300 (5E49)
* FireGL V5000 (5E48)
* FireGL V5100 (5551)
* FireGL V7100 (5550)
* FireGL X1 (4E47)
* FireGL X2-256/X2-256t (4E4B)
* FireGL X3-256 (4A4D)
* FireGL Z1 (4147)

Sources:
http://wiki.cchtml.com/index.php/Hardware
AskUbuntu
AMD