thank you for your reply,
I did some research and as you said the native support for older ATIs was dropped so now I'm running xorg ATI driver. Framerate is poor but yes, everything else, maybe except for Google earth, is running fine so I guess I have to deal with it until people at ATI come up with something better. And about that shut down screen..actually I'm starting to like it, it looks much cooler than regular PCLinuxOS screen:D.