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[Sam_ <878235@xxxxxxxxxxxxxxxxxx>]

*** This bug is a duplicate of bug 877905 ***
    https://bugs.launchpad.net/bugs/877905

According to description it seems fglrx is broken, output says it's installed but not in use.
< DkmsStatus:
 fglrx, 8.881, 2.6.38-11-generic, x86_64: installed >
< xorg:fglrx - ATI/AMD proprietary FGLRX graphics driver (Proprietary, Disabled, Not in use) >

Try troubleshooting via recovery mode, in case purge fglrx to get back a working desktop.
https://wiki.ubuntu.com/X/Troubleshooting/FglrxInteferesWithRadeonDriver

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https://bugs.launchpad.net/bugs/878235

Title:
  System unusable after update

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