I'm also having the same problem.
I'm using suse 10.1 x86_64

x.org version 6.9

display adapter ATI Mobility x1600

display driver ATI version 8.30.03

Tried stopping the suse firewall and even uninstalling the firewall

Other applications work fine with 3d acceleration

if i edit the default_lt.kvw file and comment out the windowstack render window section i get past the initializing screen but it is still unusable. otherwise I'm stuck on initializing and the cpu and memory usage spike.

Not sure what else to try.

Does anyone know what it is trying to do when it says initializing?