Just to let everyone know, we (as in, the Mandriva development community) are aware of the new ATI driver release. Anssi Hannula (who does the actual ATI / NVIDIA driver packaging), myself (who handles the graphics card / driver detection tables), and Olivier Blin and Colin Guthrie (who handle compiz and drak3d) are co-ordinating to bring this new version to both Cooker and 2008. We're aiming to upload the new driver to 2008 /backports simultaneously with backports for ldetect-lst and drak3d which will allow the graphics card configuration tool to automatically configure the new driver on appropriate cards, and set drak3d to allow 'native support' (i.e. AIGLX) for the new driver.
So if you'll give us a couple of days, you should be able to get a nice smooth and easy upgrade to the new drivers. Of course this won't stop the bleeding-edge enthusiasts running off to amd.com to try and install it themselves, but if you're willing to be a bit more patient it should be easier for you :)
We'll also consider a 2007.1 backport of some kind, but that would be rather a lot more complicated and may not be possible.