Based on my experience with ATI and NVIDIA, it appears they have become great friends.
I recently witnessed ATI kindly sharing the market with NVIDIA. While the Windows market is still a fierce battle ground, ATI has obviously handed NVIDIA the Linux market by not putting forth much of an effort at all to get their graphics cards to work under just about any distribution of the operating system.
Those with new kernels, such as the kernel that ships with Ubuntu 5.10 (Breezy Badger), will be hard pressed to get hardware accelleration to run, even with the recent release of version 8.18.6 of ATI's linux proprietary drivers.
I'm sure ATI is working hard at getting things to work under Linux, but as with most proprietary software, having it developed in a closed source office rather than the open source community, it just doesn't have much of a chance of keeping up with the development and growth of Linux.
For most software applications, this is fine, because you rarely have to upgrade applications because of a kernel upgrade, but hardware drivers and core modules are a different story.
My personal reccomendation is if you use linux, or think you might use linux, then stick with an NVIDIA card. If, however, you love Windows and will probably never even try Linux, stick with whichever card has the best advertising campaigns. (all the open source geeks are laughing at that one... at least I think that guy in the back row is laughing.... no wait, choking on a jolly rancher, my bad)
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