I discovered this the first time I tried to upgrade. DKMS tries to build the proper one but fails. In order to get the proper resolution and such, you MUST download the newest driver from the ATI website. You can use the installer or the rpm package. The installer is fairly straightforward, instructions on the rpm package can be found here:
http://www.linuxquestions.org/questi...hreadid=361450
This issue comes from the fact that the old driver (version 8.16.20) is for x.org 6.8.2. The driver on the ATI website says x.org 6.8, but is compatible with x.org 6.9.0 that ships with Mandriva 2006.
This is especially important for those of us who run Mandriva on laptops. The screen is not properly configured during setup, and creates virtual desktop areas on the top, bottom, left and right of the screen for hi-res laptop screens such as mine, which runs at 1400x1050. I cant speak for the XGA screens.
Hopefully this tidbit will help someone besides myself.