Fedora 7 Installation Guide
Now after the newest ATI catalyst release (8.39.4), fglrx module can be installed on new Xorg (7.2), Unfortunaly, the previous ATI driver (8.37.6), nor the latter one (8.38.6), or even the hotfix (8.38.7) were compatible with the X server in the FC7 distribution.
As pointed out at Phoronix.com, the latest release (8.39.4) has very little changes and completely ignored Fedora 7 users who have waited over a month for a functional driver.
"The AMD 8.38.6 display driver had introduced Red Hat Enterprise Linux 5 packaging support along with fixing a few bugs, but the driver was one of the least interesting releases in recent times." http://www.phoronix.com/scan.php?page=article&item=764&num=1
Given that this release focuses on packaging support, ATI are still prioritizing cosmetic changes over functional aspects. Whilst packages are a 'nice to have', basic functionality is far more critical.