LinuxQuestions.org - fglrx issues with kernel 2.6.16.17 and xorg 6.9

I am unable to get 3D acceleration to work. I've tried using the ati driver installer, and I've also tried the xorg 6.8 rpm (converted it with alien) on ati's website. Trying the fglrx with xorg is actually new; originally I was trying with XFree86 4.3, but to no avail and though that xorg might help.

Anyway fglrxinfo says (I'm convinced this is the problem, but I
don't know how to fix it)
display: :0.0 screen: 0
OpenGL vendor string: Mesa project: link to mesa's website
OpenGL renderer string: Mesa GLX Indirect
OpenGL version string: 1.2 (1.5 Mesa 6.4.1)

glxinfo says, among many other things:
direct rendering: No

and xorg.conf, or at least, the seemingly important bits:
...
Section "Module"
Load "GLcore"
Load "bitmap"
Load "dbe"
Load "ddc"
Load "dri"
#Load "extmod"
SubSection "extmod"
Option "omit xfree86-dga"
EndSubSection
Load "freetype"
Load "glx"
Load "int10"
Load "record"
Load "speedo"
Load "type1"
Load "vbe"
EndSection
...
# If X refuses to use the screen resolution you asked for,
# uncomment this; see "Bugs and Workarounds" for details.
#Option "NoDDC"
# === Video Overlay for the Xv extension ===
# Note: When OpenGL Overlay is enabled, Video Overlay
# will be disabled automatically
# If OpenGL acceleration doesn't work, try using "yes" here
# and disable the kernel agpgart driver.
Identifier "ATI"
Driver "fglrx"
Option "VideoOverlay" "on"
# === OpenGL Overlay ===
Option "OpenGLOverlay" "off"
# === Use internal AGP GART support? ===
Option "UseInternalAGPGART" "no"
Option "Capabilities" "0x00000000"
EndSection
...
Section "DRI"
Mode 0666
EndSection

I've been working on this on and off for the past week, with no success, and help would be greatly appreciated. I've also spent a lot of time looking on message boards for help, but everything suggested doesn't seem to do anything.
Thanks