X11R6.7 = Xorg? Xorg is based on 4.4 rc2 of XFree86 however, I was able to get my ATI drivers to "kind of work" in Xorg (not well though).
Anyhow, if you are running XFree 4.3 you should be able to get it to work, if not and your card is a 9500 or higher you probably will not be able to as I've not heard of someone who has managed to do that.
You may be in the same camp as I am, needing to wait for new drivers.
I do, however, suggest you getting the newest radeon snapshot or r200 snapshot off of http://dri.sourceforge.net
and compiling that. It will at least give you a decent driver for use with 2d applications. No 3d, but you'll be able to use MergedFB mode if you are running 2 monitors or something