After many fights with this driver, it finally works!
I started use it about 8.38* and it never worked with X 7.2 from Fedora 7. I had to use 7.1 from F6. After upgrading to F8 with changed glibc 7.1 X didn't work anymore. I had to install old X proto devel and recompile whole X from F6 and use it with fglrx up to 8.40. No hw acceleration, no video overlay. I couldn't use it with F6 packages too, fglrx kernel module had broken suspend/resume (did you know, that you can use X driver with no need to use the kernel module).
Now I have 8.42.3 with patches from livna package (to have compilable sources on 2.6.23) and lkml (to enable suspend stuff) running on X 7.3 from F8. Also I can have fglrx kernel module loaded, suspend seems to work, hw accel and video overlay enabled, so I'm happy.