download atidriver in ~/downloads (I will be in downloads from here):

mkdir startdir
mkdir startdir/src

cd startdir/src/

cp ../../ati-driver-installer-8.22.5-i386.run .

./ati-driver-installer-8.22.5-i386.run --extract archive_files

cd lib/modules/fglrx/build_mod

cp archive_files/arch/x86/* . -r
cp archive_files/common/* . -r
cp archive_files/x690/* . -r

cd lib/modules/fglrx/build_mod/

cp 2.6.x/Makefile .

sudo apt-get install linux-headers-686

make -C /usr/src/linux-headers-2.6.15-17-686 SUBDIRS="`pwd`" modules

sudo install -m 644 -D fglrx.ko /lib/modules/2.6.15-17-686/video/fglrx.ko

sudo install -d -m 755 /usr/include /usr/bin/ /usr/lib/xorg/modules /etc /usr/share

sudo mv ~/downloads/startdir/src/etc/* /etc/
sudo mv ~/downloads/startdir/src/usr/include/* /usr/include/
sudo mv ~/downloads/startdir/src/usr/share/* /usr/share/
sudo mv ~/downloads/startdir/src/usr/X11R6/include/* /usr/include/
sudo mv ~/downloads/startdir/src/usr/X11R6/bin/* /usr/bin/
sudo mv ~/downloads/startdir/src/usr/X11R6/lib/* /usr/lib/

cd /usr/lib

ln -s libGL.so.1.2 libGL.so
ln -s libGL.so.1.2 libGL.so.1
ln -sf /usr/lib/libfglrx_pp.so.1.0 libfglrx_pp.1
ln -sf /usr/lib/libfglrx_gamma.so.1.0 libfglrx_gamma.1

sudo find /usr -type d -exec chmod 755 {} \;
cd ~/downloads/

X_VERSION=x690 sudo ./ati-driver-installer-8.22.5-i386.run
select 'create custom package' and choose ubuntu 6.04

sudo dpkg -i xorg-driver-fglrx_8.22.5-1_i386.deb

if you get an error about libstdc++5 then
sudo apt-get install libstdc++5

and if that fails due to dependencies, then do this :

sudo apt-get install -f

and the gcc3-3 base, etc. will be installed and make it all work :)

restart X

Sincerely
Max