previous working upgrade wad 2010oct03.

Appears that drm or ati modules might be involved.
/dev/dri is a device rather than a directory.

mkdir dri ; mv /dev/dri dri/card0 ; mv dri /dev/

is insufficient to fix.

lspci|grep VGA
01:05.0 VGA compatible controller: ATI Technologies Inc Radeon XPRESS 200M 5955 (PCIE)

Here's Xorg.0.log:
===========================
[ 311.591] _XSERVTransSocketOpenCOTSServer: Unable to open socket for inet6
[ 311.592] _XSERVTransOpen: transport open failed for inet6/slitaz:0
[ 311.597] _XSERVTransMakeAllCOTSServerListeners: failed to open listener for inet6
[ 311.599]
X.Org X Server 1.8.2
Release Date: 2010-07-01
[ 311.605] X Protocol Version 11, Revision 0
[ 311.607] Build Operating System: SliTaz GNU/Linux
[ 311.608] Current Operating System: Linux slitaz 2.6.34-slitaz #1 SMP Fri Oct 15 18:06:28 CEST 2010 i686
[ 311.610] Kernel command line: initrd=/boot/rootfs.gz rw root=/dev/null vga=normal autologin lang=en_US BOOT_IMAGE=/boot/bzImage
[ 311.612] Build Date: 20 October 2010 04:34:00PM
[ 311.614]
[ 311.616] Current version of pixman: 0.18.4
[ 311.619] Before reporting problems, check http://wiki.x.org
to make sure that you have the latest version.
[ 311.623] Markers: (--) probed, (**) from config file, (==) default setting,
(++) from command line, (!!) notice, (II) informational,
(WW) warning, (EE) error, (NI) not implemented, (??) unknown.
[ 311.631] (==) Log file: "/var/log/Xorg.0.log", Time: Sun Oct 24 17:09:43 2010
[ 311.634] (==) Using config file: "/etc/X11/xorg.conf"
[ 311.637] (==) Using config directory: "/etc/X11/xorg.conf.d"
[ 311.640] (==) ServerLayout "X.org Configured"
[ 311.640] (**) |-->Screen "Screen0" (0)
[ 311.640] (**) | |-->Monitor "Monitor0"
[ 311.640] (**) | |-->Device "Card0"
[ 311.640] (**) |-->Input Device "Mouse0"
[ 311.640] (**) |-->Input Device "Keyboard0"
[ 311.640] (==) Automatically adding devices
[ 311.640] (==) Automatically enabling devices
[ 311.640] (WW) The directory "/usr/share/fonts/X11/TTF/" does not exist.
[ 311.640] Entry deleted from font path.
[ 311.640] (WW) The directory "/usr/share/fonts/X11/OTF" does not exist.
[ 311.640] Entry deleted from font path.
[ 311.640] (WW) The directory "/usr/share/fonts/X11/Type1/" does not exist.
[ 311.640] Entry deleted from font path.
[ 311.640] (**) FontPath set to:
/usr/share/fonts/X11/misc/,
/usr/share/fonts/X11/100dpi/,
/usr/share/fonts/X11/75dpi/,
${prefix}/share/fonts/X11/misc/,
${prefix}/share/fonts/X11/TTF/,
${prefix}/share/fonts/X11/OTF/,
${prefix}/share/fonts/X11/Type1/,
${prefix}/share/fonts/X11/100dpi/,
${prefix}/share/fonts/X11/75dpi/
[ 311.640] (**) ModulePath set to "/usr/lib/X11/modules"
[ 311.640] (WW) AllowEmptyInput is on, devices using drivers 'kbd', 'mouse' or 'vmmouse' will be disabled.
[ 311.640] (WW) Disabling Mouse0
[ 311.640] (WW) Disabling Keyboard0
[ 311.640] (II) Loader magic: 0x81e9f00
[ 311.640] (II) Module ABI versions:
[ 311.640] X.Org ANSI C Emulation: 0.4
[ 311.640] X.Org Video Driver: 7.0
[ 311.640] X.Org XInput driver : 9.0
[ 311.640] X.Org Server Extension : 3.0
[ 311.642] (--) PCI:*(0:1:5:0) 1002:5955:103c:3091 rev 0, Mem @ 0xc8000000/134217728, 0xc0100000/65536, I/O @ 0x00009000/256, BIOS @ 0x????????/131072
[ 311.642] (WW) Open ACPI failed (/var/run/acpid.socket) (No such file or directory)
[ 311.642] (II) "extmod" will be loaded. This was enabled by default and also specified in the config file.
[ 311.642] (II) "dbe" will be loaded. This was enabled by default and also specified in the config file.
[ 311.642] (II) "glx" will be loaded. This was enabled by default and also specified in the config file.
[ 311.642] (II) "record" will be loaded by default.
[ 311.642] (II) "dri" will be loaded. This was enabled by default and also specified in the config file.
[ 311.642] (II) "dri2" will be loaded by default.
[ 311.642] (II) LoadModule: "extmod"
[ 311.642] (II) Loading /usr/lib/X11/modules/extensions/libextmod.so
[ 311.643] (II) Module extmod: vendor="X.Org Foundation"
[ 311.643] compiled for 1.8.2, module version = 1.0.0
[ 311.643] Module class: X.Org Server Extension
[ 311.643] ABI class: X.Org Server Extension, version 3.0
[ 311.643] (II) Loading extension MIT-SCREEN-SAVER
[ 311.643] (II) Loading extension XFree86-VidModeExtension
[ 311.643] (II) Loading extension XFree86-DGA
[ 311.643] (II) Loading extension DPMS
[ 311.643] (II) Loading extension XVideo
[ 311.643] (II) Loading extension XVideo-MotionCompensation
[ 311.643] (II) Loading extension X-Resource
[ 311.643] (II) LoadModule: "glx"
[ 311.643] (II) Loading /usr/lib/X11/modules/extensions/libglx.so
[ 311.643] (II) Module glx: vendor="X.Org Foundation"
[ 311.643] compiled for 1.8.2, module version = 1.0.0
[ 311.643] ABI class: X.Org Server Extension, version 3.0
[ 311.643] (==) AIGLX enabled
[ 311.643] (II) Loading extension GLX
[ 311.643] (II) LoadModule: "dbe"
[ 311.643] (II) Loading /usr/lib/X11/modules/extensions/libdbe.so
[ 311.644] (II) Module dbe: vendor="X.Org Foundation"
[ 311.644] compiled for 1.8.2, module version = 1.0.0
[ 311.644] Module class: X.Org Server Extension
[ 311.644] ABI class: X.Org Server Extension, version 3.0
[ 311.644] (II) Loading extension DOUBLE-BUFFER
[ 311.644] (II) LoadModule: "dri"
[ 311.644] (II) Loading /usr/lib/X11/modules/extensions/libdri.so
[ 311.644] (II) Module dri: vendor="X.Org Foundation"
[ 311.644] compiled for 1.8.2, module version = 1.0.0
[ 311.644] ABI class: X.Org Server Extension, version 3.0
[ 311.644] (II) Loading extension XFree86-DRI
[ 311.644] (II) LoadModule: "record"
[ 311.645] (II) Loading /usr/lib/X11/modules/extensions/librecord.so
[ 311.645] (II) Module record: vendor="X.Org Foundation"
[ 311.645] compiled for 1.8.2, module version = 1.13.0
[ 311.645] Module class: X.Org Server Extension
[ 311.645] ABI class: X.Org Server Extension, version 3.0
[ 311.645] (II) Loading extension RECORD
[ 311.645] (II) LoadModule: "dri2"
[ 311.645] (II) Loading /usr/lib/X11/modules/extensions/libdri2.so
[ 311.645] (II) Module dri2: vendor="X.Org Foundation"
[ 311.645] compiled for 1.8.2, module version = 1.2.0
[ 311.645] ABI class: X.Org Server Extension, version 3.0
[ 311.645] (II) Loading extension DRI2
[ 311.645] (II) LoadModule: "radeon"
[ 311.645] (II) Loading /usr/lib/X11/modules/drivers/radeon_drv.so
[ 311.646] (II) Module radeon: vendor="X.Org Foundation"
[ 311.646] compiled for 1.8.0, module version = 6.13.2
[ 311.646] Module class: X.Org Video Driver
[ 311.646] ABI class: X.Org Video Driver, version 7.0
[ 311.646] (II) RADEON: Driver for ATI Radeon chipsets:
ATI Radeon Mobility X600 (M24) 3150 (PCIE), ATI FireMV 2400 (PCI),
ATI Radeon Mobility X300 (M24) 3152 (PCIE),
[...]
ATI Radeon XPRESS 200 5954 (PCIE),
ATI Radeon XPRESS 200M 5955 (PCIE), ATI Radeon 9250 5960 (AGP),
ATI Radeon 9200 5961 (AGP), ATI Radeon 9200 5962 (AGP),
[...]
ATI Radeon HD 5450, CEDAR
[ 311.648] (--) using VT number 7

[ 311.648] (WW) xf86OpenConsole: setpgid failed: Operation not permitted
[ 311.658] (II) Primary Device is: PCI 01@00:05:0
[ 311.658] (II) [KMS] Kernel modesetting enabled.
[ 311.658] (==) RADEON(0): Depth 24, (--) framebuffer bpp 32
[ 311.659] (II) RADEON(0): Pixel depth = 24 bits stored in 4 bytes (32 bpp pixmaps)
[ 311.659] (==) RADEON(0): Default visual is TrueColor
[ 311.659] (==) RADEON(0): RGB weight 888
[ 311.659] (II) RADEON(0): Using 8 bits per RGB (8 bit DAC)
[ 311.659] (--) RADEON(0): Chipset: "ATI Radeon XPRESS 200M 5955 (PCIE)" (ChipID = 0x5955)
[ 311.659] (II) RADEON(0): PCI card detected
[ 311.659] drmOpenDevice: node name is /dev/dri/card0
[ 311.659] drmOpenDevice: open result is 9, (OK)
[ 311.661] drmOpenByBusid: Searching for BusID pci:0000:01:05.0
[ 311.661] drmOpenDevice: node name is /dev/dri/card0
[ 311.661] drmOpenDevice: open result is 9, (OK)
[ 311.661] drmOpenByBusid: drmOpenMinor returns 9
[ 311.661] drmOpenByBusid: Interface 1.4 failed, trying 1.1
[ 311.661] drmOpenByBusid: drmGetBusid reports (null)
[ 311.661] drmOpenDevice: node name is /dev/dri/card1
[ 311.661] drmOpenDevice: open result is -1, (No such device)
[ 311.661] drmOpenDevice: open result is -1, (No such device)
[...]
[ 311.662] drmOpenDevice: node name is /dev/dri/card15
[ 311.662] drmOpenDevice: open result is -1, (No such device)
[ 311.662] drmOpenDevice: open result is -1, (No such device)
[ 311.662] drmOpenDevice: Open failed
[ 311.662] drmOpenByBusid: drmOpenMinor returns -19
[ 311.662] drmOpenDevice: node name is /dev/dri/card0
[ 311.662] drmOpenDevice: open result is 9, (OK)
[ 311.664] drmOpenDevice: node name is /dev/dri/card0
[ 311.665] drmOpenDevice: open result is 9, (OK)
[ 311.665] drmOpenDevice: node name is /dev/dri/card1
[ 311.665] drmOpenDevice: open result is -1, (No such device)
[...]
[ 311.666] drmOpenDevice: node name is /dev/dri/card15
[ 311.666] drmOpenDevice: open result is -1, (No such device)
[ 311.666] drmOpenDevice: open result is -1, (No such device)
[ 311.666] drmOpenDevice: Open failed
[ 311.666] (EE) RADEON(0): [drm] Failed to open DRM device for pci:0000:01:05.0: No such file or directory
[ 311.666] (EE) RADEON(0): Kernel modesetting setup failed
[ 311.666] (II) UnloadModule: "radeon"
[ 311.666] (EE) Screen(s) found, but none have a usable configuration.
[ 311.666]
Fatal server error:
[ 311.666] no screens found
[ 311.666]
Please consult the The X.Org Foundation support
at http://wiki.x.org
for help.
[ 311.666] Please also check the log file at "/var/log/Xorg.0.log" for additional information.
[ 311.666]