Hi Friend ..
I got a link to give a try , I am also using the ATI Radeon Xpress 1250 Video Card and fedora 9 .
http://ati.amd.com/support/driver.html
From the link select the appropriate product and then install them.
I have a problem with running the Video , but I use the a low resolution to watch ....
Just install the driver and start in init:3 mode .
If the X server fails to load then give the command aticonfig-initial -f ,
it will revert back to your old state .
Thanks
Peeths