AMD has issued a new release of their ATI Radeon drivers for Linux. The new version 8.42.3 (equivalent to Windows release 7.10) brings significant new features to the driver package, particularly support for the newest versions of Xorg. Hardware support for all new Radeons is included as well, including the HD 2900 series and all All-In-Wonder variants of their cards. Older Radeons before the 2x00 series are fully enabled as well, as far back as the driver supports.
This new package includes AIGLX support. They have updated the Catalyst Control Center for Linux, and added more functionality for configuring things such as AA, AF and VSYNC. Several bug fixes were posted with this release as well, such as video playback issues and corruption when using the Composite extension.
You can download the driver from AMD's site. The package weighs in at 48.1MB.