The driver is fine - the only error is that there is no screen (monitor parameters - res, depth, refresh rate) configuration that X can use. Download someone else's 128 XF86Config and put it in /etc/X11 (or /usr/X11R6/lib/X11 or wherever it goes in Doobian).
Wrong. The error "No Screens Found" is occurring because the driver cannot locate a suitable card, because it doesn't support Thane's model. A "screen" is a combination of resolution and colour depth. Which, if no suitable graphics device can be located, clearly cannot exist.
If you knew anything at all about Debian (and because you don't, and clearly can't be bothered to find out, I'm apt [har har] to discard anything you say on the subject. This reply to your comment is for Thane's benefit, not yours), then you'd know that XF86Config-4 is the configuration file, and it's located in /etc/X11.
What's your monitor?
Irrelevant.
Seems like a lot of people have issues. You can try running the old script xf86config4.
Doesn't exist.
BTW you really want to upgrade to 4.2 anyway. Better RENDER support in xterm.
RENDER extension support did not change between 4.1 and 4.2. You're making up plausible-sounding sentences.
Thane's big win in upgrading to 4.2 will be that the ati driver will actually support his card.
Perhaps you should actually research the subject at hand before spouting. Bad advice (like yours) is much, much worse than no advice.