This is my first post here, so please be patient.
System: HP Pavilion dv5139us Notebook
2.2 GHz 64bit Athlon Turion
2GB RAM
Graphics: ATI Radeon XPRESS 200M
OS: SuSE 10.1 IA 32 ... yes 32bit
All apps are 32 bit.

I followed these instructions at
The 5.12.2006 article at linux*wordpress*com explicitly.
linux.wordpress.com/2006/05/12/suse-101-ati-drivers-installation/

Results:
Prior to the ATI install, glxinfo did display the Mesa drivers.

After the ATI upgrade, glxinfo and fglrxinfo both report:
Error: unable to open display (null)

startkde summarily reports:
xset and xsetroot: unable to open display "" ''
kdeinit: Aborting. $DISPLAY is not set.
ksmserver: cannot connect to X server
Error: Couldn't attach to DCOP server!
startkde shutting down.

So ... x also did not start !!!! |-(

After all of that, I know in part some of this has to do with the resulting xorg.conf configuration.
I have managed to play with it to get improved results.

This laptop also has a vga port, so, naturally xorg.conf was configured in a dual monitor mode.

I asserted the xorg.conf.saxsave as xorg.conf and rebooted .... well I was able to startx, however,
when changing sessions, switching users, rebooting, or shutting down, the graphics would turn dark grey then that serene blue (both had horizontal and vertical lines ... no discernable data viewable).
Talking

My lcd screen on my notebook is made by LGPhillips at 1280x800 resolution at 24 bits.

Lightbulb!!! I then decided to backup this "better" result and edit the file with this data:

Section "Device"
Identifier "Device[0]"
# Driver "radeon"
Driver "fglrx"
VendorName "ATI"
BoardName "Radeon XPRESS 200M 5955 (PCIE)"
BusID "PCI:1:5:0"
Option "KernelModuleParm" "agplock=0"
Option "UseInternalAGPGART" "no"
Option "EnablePrivateBackZ" "no"
# Option "mtrr" "on"
EndSection

Section "DRI"
Group "video"
# Here I changed Mode from 0660 to 0666
Mode "0666"
EndSection

********************************************************

I now can end session, reboot, or shutdown, however, with a little bit of screen scramble, but the presentation on the screen returns/responds like should. An Improvement --

Question:
Does anyone know of any improvements so that KDM or KDE video transitions via X are more "normal"?

I know this is lengthy and I thank you for your patience.

O.

Edited since the OP's post, which originally had URGENT in the title, was edited.

that's just wrong