I was under the impression that the radeon driver that was included did not support hardware acceleration due to ATI not being able to release some proprietary info....noob thing I guess...forgot what I was reading that said that.
From the radeon driver man page...
radeon is an Xorg driver for ATI RADEON based video cards. It contains
full support for 8, 15, 16 and 24 bit pixel depths, dual-head setup,
flat panel, hardware 2D acceleration, hardware 3D acceleration, hard‐
ware cursor, XV extension, and the Xinerama extension.
For a long time, the specs for legacy radeon cards have been released to the community. This means that older cards usually have 3D acceleration. There was some indication that specs for cards used in x-boxes would not be released... don't know about that. But it is always worth trying the FOSS options first.
As for the rest:
... for openSUSE 10.3 (rest of the thread is good too.
You don't need glx - disable and remove. Recent fglrx drivers have aiglx support.
The fglrx driver really needs to come from an official SUSE source... the ATI version is just unpredictable.
Server flags needs to turn AIGLX on.
Extensions needs to make damage and composite "true"
And you gotta whitelist the driver.
I'd also want to comment out most of the driver options.
But really - try the radeon driver to start with.