This is one process I would describe as a complete pain in the &$$! The emerge of the modular X packages will work, only if you painstakingly make sure that every hint, trace, or reference to your previous X installation is gone before trying. (at least on my amd64 system). I finally got it working with the ati proprietary drivers (another pain in the arse) this afternoon. I must say that it is pretty sweet. Only prob: it broke Xscreensaver somehow. But I really don't care, I usually log out and leave my comp in text mode if I'm not using it.

Oh, after getting DRI fixed I got xscreensaver to work again.