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I've heard many people complain about the ATI drivers on Ubuntu 12.04. So should i stay with radeon drivers (which im not sure if they are good enough) or try install fglrx and risk getting a buggy system?

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Two words Try them, I personally don't have any issues with FGLRX, radeon on the other side doesn't do good with HDMI and overscanning on a TV. – Uri Herrera Aug 16 '12 at 20:41
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The current fglrx release (12.8) doesn't support the Radeon HD 4850 (source). The version included in 12.04 is an older version that does support your card, but you won't be able to upgrade to 12.10 when it comes around.

My recommendation is to stay with the radeon driver unless you need to run a specific application that won't run under it. (And if you do have an application that won't run under radeon, you might want to file a bug so that the features you need make it in before you need to upgrade).

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12.6 does support the Radeon HD 4x series is the last one to do so, AMD calls it Legacy driver.The current version of Catalyst is 12.8. [...]but you won't be able to upgrade to 12.10 when it comes around.[...] Why not?. – Uri Herrera Aug 16 '12 at 20:56
@UriHerrera I think the legacy driver doesn't support the new kernel/xorg version in 12.10. – cscarney Aug 16 '12 at 21:49
@UriHerrera i think you're right...for now! I've tryed to installed it on my beta 2 ubuntu 12.10 and it comes with several problems (many people reported already as a bug problem that is under recognition and fixed. So, maybe it's better to wait a while. Legacy driver is going to be supported on 12.10 Quantal Quetzal. – Jorge Pinho Oct 10 '12 at 21:26

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