I have an ATI All-In-Wonder 9600 myself, so I know a *little* here...
-- SuSE 9.0Pro -really- does not like ATI, so I gave up on SuSE after months of part-time fornicating with this problem, so, being a mid-level Linux & high-level overall computerist, I went to Gentoo Linux. (NOT for newbies!)
I can't help you much on the compile here -- I haven't had any such problem YET. (universe, you *heard* me say 'yet'!)
So let's us just see if things are already in usable state from what you said...
I am assuming that you have used fglrxconfig to set things up? If not, text-mode x-ATI config program.
Where you really don't know what they're asking, accept the indicated default. Have your monitor's manual handy, or find the specs on the web. You'll need them! (Most likely...!)
I have been hearing about something called gatos. Google for this and see if it might be (part of) what you need. (at www.google.com/linux
I know gatos is for capture & tuner(?), but it may be for output also? Anyway, have a look at it if you get this far & still nogo
Advice: Set your lilo or grub to boot in pure text, and go to /etc/inittab, find the line saying something like
and change that to '3' if not already; this makes linux start at a console instead of going directly to graphics -- this way, if something breaks, you can still log in.
Once in, type 'startx' to start the x-server.
If something does go wrong, Ctrl-Alt-Backspace kills the x-server & gets you back to a command prompt; if you boot directly to gui, you can't do this.
*I* _always_ boot this way.