ATI announced today that the 8.42 driver for Linux has been released. AIGLX support? Have at it! Catalyst Control Center? Knock yourself out! Video playback performance increases? You bet. Xorg 1.4 support? Why not! Do yourselves a favor and check out Compiz (and cousins) as it was meant to be experienced without the hefty overhead of Xgl.
More information on the driver itself, and a download can be found at http://www.phoronix.com/scan.php?page=article&item=887