I thought it was maybe a problem with not enough RAM, but from responses I got here in Hardware section, it seems that is not the problem. Doubt that it's over heating, in BIOS the temperature readouts are 32*C CPU and 17*C system. Using lmsensors I get readouts of 0*C CPU and -10*C GPU, which is obviously NOT correct.
I currently have the open source video driver, heard lots of other people saying that the fglrx driver causes the system to not boot into gui or not boot at all.
Is the whole problem due to graphics driver? Or something else?

The machine is a CybertronPC Assault A46 (got mine from Best Buy)

Here is the hardware it's running

Mobo (has latest revision BIOS v32.7)

APU (I'm looking into upgrading it to an A8 or maybe an A10 unlocked)

PSU (the stock one was what is included with the case, cheap 350 watt junk with no over volt, over current or active PFC)

HDD (KInfoCenter shows it as IDE bus)

SSD (not currently installed or in use, will take a performance hit from mobo having only SATA II ports, have to learn how to install for SSD as boot and HDD for storage.. and noticing this shows as 256GB, mine is 128GB)

RAM (I'm planning to upgrade this to 2x 8GB DDR3-1866.. been looking at G.Skill and HyperX)

At boot up and during reboot I see the following message show on my screen.

In case it's hard to see it says
[firmware bug]: AMD-Vi: IOAPIC[0] not in IVRS table
[firmware bug]: AMD-Vi: No southbridge IOAPIC found
AMD-Vi: Disabling interrupt remapping

I ditched the stock CPU cooler that came on it (tiny aluminum) for a stock PhenomII X6 cooler (copper base, aluminum fins and copper heat pipes). Thermal compound was all dried up and full of dust buildup, it now has fresh Arctic Silver 5 compound.