I did something similar like this again. Managed to keep my disk in order this time, but I don’t know how many different versions of the ATI-drivers I tried, all for nothing. I’m back to 2.6.31-ARCH and it’s treating me great. A bad combination of lack of support for xorg 1.7> on the ATI-drivers, and a dispute with the new kernel made me waste another morning.
I should begin using LVM to simplify the rollback process. As for now I’ve manually removed each xorg-, ati- and kernel-pkg which had to be removed, re-installed, or installed due to dependency hell. Thanks to the ARM for being there.