Install the latest drivers for ATI from
www.ati.com The X1xxx series are not supported by any other drivers that come with Suse 10.1, so you'll have to download the ATI driver to get the proper support.
Regarding to the sound question. Perhaps the sound is just muted. Try the following command "aplay /path/to/some/file.wav" to check if the sound works. Note that aplay plays only wav files, or else you'll hear garbage.