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[DAP <Douglas_Peale@xxxxxxxxx>]

I am also having this issue.
ATI 4850HD
64 bit ubuntu.

I know the root cause of my troubles: I foolishly tried to install the ATI driver from the ATI website (version 9.10)
I tried to uninstall it and was stuck with dead keyboard and my monitor in sleep mode.
I SSHed into my computer and re-installed the broken ATI driver, that got me something that would at least boot.
tried uninstalling again, this got me to a boot that gave me errors, but allowed me to boot in safe video mode.
In safe video mode, I re-installed the hardware driver via the "Hardware Drivers" option.
This left me stuck with the "missing PCS defaults file /etc/ati/amdpcsdb.default".
I copied the "amdpcsdb.default.dpkg-bak" file to "amdpcsdb.default", and got something that boots, but now I am stuck with a bug in the lower right corner of my screen that says:
"AMD
 Testing use
       only
Unsupported
   hardware"

-- 
fglrx fails at startup because of missing  amdpcsdb.default + removal leaves bad settings in Xorg.conf
https://bugs.launchpad.net/bugs/440233
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