Comment 12 for bug 565407

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Jean-Baptiste Lallement (jibel) wrote : Re: package fglrx (not installed) failed to install/upgrade: subprocess new pre-installation script returned error exit status 1 - inst_path_default or inst_path_override does not exist in /etc/ati

This can only happen if you previously have the drivers from ATI installed on your system and then install the Ubuntu package without uninstalling them.