Make sure these options are set in your kernel:

CONFIG_DRM=y
# CONFIG_DRM_TDFX is not set
# CONFIG_DRM_R128 is not set
CONFIG_DRM_RADEON=y
# CONFIG_DRM_I810 is not set
# CONFIG_DRM_I830 is not set
# CONFIG_DRM_I915 is not set
# CONFIG_DRM_MGA is not set
# CONFIG_DRM_SIS is not set

CONFIG_AGP=y
# CONFIG_AGP_ALI is not set
# CONFIG_AGP_ATI is not set
# CONFIG_AGP_AMD is not set
# CONFIG_AGP_AMD64 is not set
CONFIG_AGP_INTEL=y
CONFIG_AGP_INTEL_MCH=y

Make sure your xorg.conf file looks similar, and all options are uncommented:

Section "Module"
Load "extmod"
Load "dbe" # double-buffering extensions
Load "dri" # direct-rendering
Load "GLcore"
Load "glx" # 3D layer
Load "record"
Load "xtrap"
Load "type1" # fonts
Load "freetype" # fonts
# Load "speedo" # fonts
# Load "xtt" # fonts
Load "v4l" # video for linux
EndSection

Section "Device"
Identifier "ATI Radeon 7000"
Driver "radeon"
VendorName "ATI"
BoardName "Radeon VE/7000 QY"
BusID "PCI:1:0:0"
Option "AGPMode" "4"
Option "AGPSize" "64"

# ATI Radeon 7000 doesnt support fast-writes
#Option "AGPFastWrite" "yes" #requires dri modules

Option "EnablePageFlip" "True"
Option "RenderAccel" "True"
EndSection

Download and install the most recent version of Mesa OpenGL:
http://www.mesa3d.org/

Now when you run:
ldd `which glxgears`
you should get:
libGL.so.1 => /usr/local/lib/Mesa-6.2/libGL.so.1 (0xb7dcf000)

Download and install the latest ATI drivers from www.ati.com
Be sure to run fglrxconfig to set everything up.

You should now be able to run glxgears and fgl_glxgears.