localhost ~ # aticonfig --initial --input=/etc/X11/xorg.conf
Data incomplete in file /etc/X11/xorg.conf
        At least one Device section is required.
Data incomplete in file /etc/X11/xorg.conf
        At least one Screen section is required.
aticonfig: Parsing the configuration file failed.
The above error messages are reported from XFree86 and may assist you in
diagnosing the problem with your configuration input file. Try use -f option
to generate a new configuration file.
localhost ~ # aticonfig -f --initial --input=/etc/X11/xorg.conf
Data incomplete in file /etc/X11/xorg.conf
        At least one Device section is required.
Data incomplete in file /etc/X11/xorg.conf
        At least one Screen section is required.
Uninitialised file found, configuring.
Using /etc/X11/xorg.conf
Data incomplete in file /etc/X11/xorg.conf
        At least one Device section is required.
Data incomplete in file /etc/X11/xorg.conf
        At least one Screen section is required.
Saved back-up to /etc/X11/xorg.conf.original-0
localhost ~ #





And this is the Xorg after second try with -f.
(before it was empty)
Section "ServerLayout"
        Identifier     "aticonfig-Layout[all]"
        Screen      0  "aticonfig-Screen[0]" 0 0
EndSection

Section "Files"
EndSection

Section "Module"
EndSection

Section "Monitor"
        Identifier   "aticonfig-Monitor[0]"
        Option      "VendorName" "ATI Proprietary Driver"
        Option      "ModelName" "Generic Autodetecting Monitor"
        Option      "DPMS" "true"
EndSection

Section "Device"
        Identifier  "aticonfig-Device[0]"
        Driver      "fglrx"
EndSection

Section "Screen"
        Identifier "aticonfig-Screen[0]"
        Device     "aticonfig-Device[0]"
        Monitor    "aticonfig-Monitor[0]"
        DefaultDepth     24
        SubSection "Display"
                Viewport   0 0
                Depth     24
        EndSubSection
EndSection

=========================================
and still output is the same when starting X:


localhost / # startx
xauth:  creating new authority file /root/.serverauth.25651

X Window System Version 1.3.0
Release Date: 19 April 2007
X Protocol Version 11, Revision 0, Release 1.3
Build Operating System: UNKNOWN
Current Operating System: Linux localhost 2.6.22-gentoo-r9 #1 SMP Mon Nov 19 05:  21:43 EET 2007 i686
Build Date: 19 November 2007
        Before reporting problems, check http://wiki.x.org
        to make sure that you have the latest version.
Module Loader present
Markers: (--) probed, (**) from config file, (==) default setting,
        (++) from command line, (!!) notice, (II) informational,
        (WW) warning, (EE) error, (NI) not implemented, (??) unknown.
(==) Log file: "/var/log/Xorg.0.log", Time: Mon Nov 19 21:58:38 2007
(==) Using config file: "/etc/X11/xorg.conf"

(EE) No devices detected.

Fatal server error:
no screens found
XIO:  fatal IO error 104 (Connection reset by peer) on X server ":0.0"
      after 0 requests (0 known processed) with 0 events remaining.
localhost / #