FC2 upgrade-X problem

I've just upgraded an FC1 installation to FC2,and run into a problem getting the X server to launch. The system had been running Gnome on an ATI Rage 128. After the upgrade, if I try to boot into run level 5, the X server tries repeatedly and endlessly to start, usually displaying a blank dark-blue hi-res screen with an X cursor in the center. I've changed inittab to boot into run level 3. From there, if I try to do init 5, I get the same result. However, I can command startx from the run-level 3 prompt, and the X server comes right up with my old Gnome settings. Next, I made up a test script that runs all the start scripts in rc5.d. When I run that, it starts up all the services associated with run level 5 -- the Samba server shows up on the network, and so forth -- and I am no longer able to run startx. However, if I remove the xfs start script from this script, I'm again able to bring up startx. Next, I tried removing the xfs startup script from rc5.d and booting into run level 5...and that put me back where I started. I still can't get the X server up except by running startx from the text prompt. Suggestions? Thanks... rj