Ok, I am using Ubuntu Feisty for starters.
Hi All,
I am currently running Feisty Fawn with an ATI 1650 card using fglrx. fglrx had an update last night from the OS that I ran and when I rebooted, it messed up video. As soon as I login the screen has messed up horizontal lines over everything and it does not show up properly.

Now, if I choose gnome without xgl everything shows up fine. Any suggestions what to check?

I myself would take two steps:

1) remove, or at least move to a different name, all Beryl/other 3d-stuff related configurations. Maybe even ~/.gnome and/or ~/.gnome2 directories, if you're using Gnome, to see if it's about the desktop configuration or not.
2) reinstall Beryl/whatever you use.

The thumb rule to follow is "don't fix a working thing" - especially if it's related to your graphics card or kernel. If your fglrx drivers were working fine, why did you upgrade them? Kernel upgrade is ok for security reasons maybe, but I don't recommend doing that every night unless you have a reason..graphics card drivers are even worse, the installation is often tricky and it just messes things up. If you get the thing working again, I recommend not to upgrade it unless you really have to.

Yeah, I definitely will not update fglrx again. I am still relatively new to linux, so I am getting the hang of things. I don't believe it is the Beryl that is the problem, but more so the XGL. Gnome works fine, but when it runs the XGL script in the tutorial link below is when I have the issues.

http://ubuntuforums.org/showthread.php?t=488385