Debian Testing (Jessie) custom kernel and ATI driver installation borked

I am on Debian Jessie/Sid 64-bit and trying to use:

3.12.0-customkernel
00:02.0 VGA compatible controller: Intel Corporation 2nd Generation Core Processor Family Integrated Graphics Controller (rev 09)
01:00.0 VGA compatible controller: Advanced Micro Devices, Inc. [AMD/ATI] Seymour [Radeon HD 6400M/7400M Series]

I installed the ATI drivers based on https://wiki.debian.org/ATIProprietary#configure. I am getting "Oh no! Something has gone wrong " instead of proper GDM. I removed the .Xauthority file, the temp X files, etc., but none of that was any help.

Then I installed the amd-catalyst-13.11-beta6-linux-x86.x86_64.run driver by forwarding my display to another computer. Somehow the AMD driver was failing to install without X screen. I created the initial xorg.conf with aticonfig. That did not work either.

I am not sure if I am hitting a bug here, or something is corrupt in my system. At this point I am out of ideas and I cannot find any leads on the web either. So SU is my last hope I guess.

Here are some logs

Xorg -configure
_XSERVTransSocketUNIXCreateListener: ...SocketCreateListener() failed
_XSERVTransMakeAllCOTSServerListeners: server already running
(EE)
Fatal server error:
(EE) Cannot establish any listening sockets - Make sure an X server isn't already running(EE)
(EE)

Please consult the The X.Org Foundation support
         at http://wiki.x.org
 for help.
(EE) Please also check the log file at "/var/log/Xorg.0.log" for additional information.
(EE)
(EE) Server terminated with error (1). Closing log file.


[    98.053] _XSERVTransSocketUNIXCreateListener: ...SocketCreateListener() failed
[    98.053] _XSERVTransMakeAllCOTSServerListeners: server already running

[    98.053] (EE)
Fatal server error:
[    98.053] (EE) Cannot establish any listening sockets - Make sure an X server isn't already running(EE)
[    98.053] (EE)
Please consult the The X.Org Foundation support
         at http://wiki.x.org
 for help.
[    98.053] (EE) Please also check the log file at "/var/log/Xorg.0.log" for additional information.
[    98.053] (EE)
[    98.053] (EE) Server terminated with error (1). Closing log file.


xorg.1.log
[  4717.378] X Protocol Version 11, Revision 0
[  4717.379] Build Operating System: Linux 3.12.0-rc6-patser+ x86_64 Debian
[  4717.380] Current Operating System: Linux hitit 3.12.0-customkernel #1 SMP Fri Dec 20 23:05:55 CST 2013 x86_64
[  4717.380] Kernel command line: BOOT_IMAGE=/boot/vmlinuz-3.12.0-customkernel root=UUID=3ac264da-5290-4bf0-a5dc-4efb7c65e9bd ro quiet
[  4717.381] Build Date: 25 November 2013  01:54:46PM
[  4717.382] xorg-server 2:1.14.3-5 (Maarten Lankhorst )
[  4717.383] Current version of pixman: 0.30.2
[  4717.385]    Before reporting problems, check http://wiki.x.org

        to make sure that you have the latest version.
[  4717.385] Markers: (--) probed, (**) from config file, (==) default setting,
        (++) from command line, (!!) notice, (II) informational,
        (WW) warning, (EE) error, (NI) not implemented, (??) unknown.
[  4717.388] (==) Log file: "/var/log/Xorg.1.log", Time: Sat Dec 21 13:05:06 2013
[  4717.389] (==) Using system config directory "/usr/share/X11/xorg.conf.d"
[  4717.389] (==) No Layout section.  Using the first Screen section.
[  4717.389] (==) No screen section available. Using defaults.
[  4717.389] (**) |-->Screen "Default Screen Section" (0)
[  4717.389] (**) |   |-->Monitor ""

[  4717.389] (==) No monitor specified for screen "Default Screen Section".
        Using a default monitor configuration.
[  4717.389] (==) Automatically adding devices
[  4717.389] (==) Automatically enabling devices
[  4717.389] (==) Automatically adding GPU devices
[  4717.389] (WW) The directory "/usr/share/fonts/X11/cyrillic" does not exist.
[  4717.389]    Entry deleted from font path.
[  4717.389] (==) FontPath set to:
        /usr/share/fonts/X11/misc,
        /usr/share/fonts/X11/100dpi/:unscaled,

        /usr/share/fonts/X11/75dpi/:unscaled,
        /usr/share/fonts/X11/Type1,
        /usr/share/fonts/X11/100dpi,
        /usr/share/fonts/X11/75dpi,
        built-ins
[  4717.389] (==) ModulePath set to "/usr/lib/xorg/modules"
[  4717.389] (II) The server relies on udev to provide the list of input devices.
        If no devices become available, reconfigure udev or disable AutoAddDevices.
[  4717.389] (II) Loader magic: 0x7fbeb4527d00
[  4717.389] (II) Module ABI versions:

[  4717.389]    X.Org ANSI C Emulation: 0.4
[  4717.389]    X.Org Video Driver: 14.1
[  4717.389]    X.Org XInput driver : 19.1
[  4717.389]    X.Org Server Extension : 7.0
[  4717.389] (II) xfree86: Adding drm device (/dev/dri/card0)
[  4717.389] (II) xfree86: Adding drm device (/dev/dri/card1)
[  4717.391] (--) PCI:*(0:0:2:0) 8086:0116:104d:907b rev 9, Mem @ 0xc0000000/4194304, 0xb0000000/268435456, I/O @ 0x00008000/64
[  4717.391] (--) PCI: (0:1:0:0) 1002:6760:104d:907b rev 0, Mem @ 0xa0000000/268435456, 0xc8400000/131072, I/O @ 0x00007000/256, BIOS @ 0x????????/131072
[  4717.391] (II) Open ACPI successful (/var/run/acpid.socket)
[  4717.392] Initializing built-in extension Generic Event Extension