Yes, login was working because the clinfo was not able to find GPU. (therefore no segmentation fault with CPU only).
I found my problem could have been a mixture of stuff..
First of all, after installing app sdk, maybe I should have re-installed catalyst to avoid segmentation fault?
http://devgurus.amd.com/message/1278575#1278575
When I installed catalyst, it installed libraries to /usr/lib64 for some reason and X stopped working altogether. I found out that the libraries were installed to /usr/lib64 which is wrong. I went ahead and removed everything.
Then I found this hint which suggests linking /usr/lib to /usr/lib64 in ubuntu
http://ubuntucomputing.blogspot.com/2012/01/amd-catalyst-121-driver-on-hp-pavilion.html
I have done the link and re-installed everything. It works!