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OK, i see. It could be just that your card doesn't work with the new drivers. In fact, I think there was another recent cutoff of old ATI cards that had their support dropped...but I could be mistaken. You could probably eliminate the clicks for recovery mode for the time being by changing the driver entry in xorg.conf to "radeon" (I think that's it anyway..) but you still won't have the effects.

If you get annoyed enough and want the effects back, try downgrading the fancypants binary ati driver to the version that worked before.  Of course, there's a possibility it may be a problem with something else, but barring any error output files that's my best guess.