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blinking cursor with ASUS K53T laptop

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http://chakra-project.org – Chakra basically stopped working with the latest update to xorg and ati, it worked fine before with ati 12.4 Catalyst but 12.6 is a no go. I tried out the latest Chakra Claire, it would boot fine of live CD with graphics but I would get a message of unknown graphic. After install and update, I installed Catalyst and it was the same story, system would boot to a blinking cursor. The specs for this laptop are AMD quad core 3400CPU with built in ALU+discrete graphics card namely 6600M and 6700M. Chakra worked fine on this very laptop before, in fact it was the only Linux distro working on this ma (HowTos)