I've started working on LFS again, and sadly I could not get hardware acceleration for my r200 card (radeon 8500) with the fglrx driver, even when having the gcc-3.3 libs installed. The dri seems to give me good performance for it though. For radeon9500 (I think it's r300) the cvs dri, cvs Mesa, and cvs X are supposed to give good performance. I think you have to already have XOrg-6.9 to build and install the cvs X on top of it (and then to build Mesa and drm). I couldn't compile cvs XOrg with Xorg-6.8.2, but I recall seeing something on the dri website saying the drivers are compatible with 6.9.
The build instructions are dated though. For instance, the buildtools patch they have on the site fails when I try to apply it to the cvs source.