Radeon 9700 3D support
1 - don't compile (optional)intel-agp, radeon drm modules
look at the .config file for more information
the following patchs(fglrx-2.6.12-inter_module, kernel-2.6.12-agpgart) are not needed for ati-drivers-8.16.20
2 - emerge =media-video/ati-drivers-8.16.20 (8.16.20 tested on Xorg 6.8.2)
fetch the following files (for 2.6.12 kernel series):
3 - launch fglrxconfig to create /etc/X11/xorg.conf
look at my /etc/X11/xorg.conf file
4 - emerge =media-video/ati-drivers-extra-8.16.20 (8.16.20 tested on Xorg 6.8.2) to obtain utilities like fgl_glxgears, fglrxinfo

Add-on : /var/log/Xorg.0.log