Okay I tried xorg with a merge of your configuration and mine and your configuration alone - exactly the same results.
It is now obvious to me that the problem is within the FGLRX driver, the Kernel and/or the Xorg program, but not the Xorg configuration file.
Are there any more config files I should know about?
UPDATE: I found an error in boot.log with fglrx installed that does not happen without fglrx -> something with DKMS:
WITH FGLRX:
Code:
Welcome to Fedora
Press 'I' to enter interactive startup.
Starting udev: [ OK ]
Setting hostname Kiboney: [ OK ]
mdadm: No arrays found in config file or automatically
Setting up Logical Volume Management: 2 logical volume(s) in volume group "vg_kiboney" now active
[ OK ]
Checking filesystems
/dev/mapper/vg_kiboney-lv_root: clean, 334689/9502720 files, 3537056/37992448 blocks
/dev/sdb1: recovering journal
/dev/sdb1: clean, 45/51200 files, 36061/204800 blocks
[ OK ]
Remounting root filesystem in read-write mode: [ OK ]
Mounting local filesystems: [ OK ]
Enabling local filesystem quotas: [ OK ]
Enabling /etc/fstab swaps: [ OK ]
Entering non-interactive startup
Applying Intel CPU microcode update: [ OK ]
Running DKMS auto installation service for kernel 2.6.29.5-191.fc11.i586
Failed.
Checking kmods exist for 2.6.29.5-191.fc11.i586 [ OK ]
ip6tables: Applying firewall rules: [ OK ]
ip6tables: Loading additional modules: nf_conntrack_netbios[ OK ]
iptables: Applying firewall rules: [ OK ]
iptables: Loading additional modules: nf_conntrack_netbios_[ OK ]
Starting auditd: [ OK ]
Starting portreserve: [ OK ]
Starting system logger: [ OK ]
Starting irqbalance: [ OK ]
Starting rpcbind: [ OK ]
Starting NFS statd: [ OK ]
Starting RPC idmapd: [ OK ]
Starting system message bus: [ OK ]
Starting Avahi daemon... [ OK ]
Starting cups: [ OK ]
Starting acpi daemon: [ OK ]
Starting HAL daemon: [ OK ]
Starting PC/SC smart card daemon (pcscd): [ OK ]
Setting network parameters... [ OK ]
Starting NetworkManager daemon: [ OK ]
Starting Bluetooth services: [ OK ]
Starting sshd: [ OK ]
Starting ntpd: [ OK ]
Starting sendmail: [ OK ]
Starting sm-client: [ OK ]
Starting console mouse services: [ OK ]
Starting crond: [ OK ]
Enabling monthly Smolt checkin: [ OK ]
Starting atd: [ OK ]
Registering binary handler for Windows applications: [ OK ]