Like Micro said it will take some time.
Fret not, i know its hair pulling but give it some time and blow off some steam...
Get back at it and you will know what to do......
Upgrading to the latest and greatest in linux can be a nightmare and a harrowing experience for people trying to make it. Most of the mainline kernels are not geared towards stability and usability let alone good working OS!!
Mainline kernels are for kernel developers and modders who need the latest features that can help in their builds.
Kernel 3.7's main purpose is supporting ARM out of the box, so arm kernel developers for the first time in history can sit back, program and compile stuff...........sure you will get your way around but in no way will you have a stable sane system for serious work.......that's why one always needs a spare to make, test and break and then make it again...Or better a spare partition for applying newer tech stuff to gamble and see if it works even better than the stable one.
All the error messages that you get from 3.7 can be overwhelming especially if you are new to linux.....if you are hell bent on finding your way around, its your choice and you will learn lots to apply it elsewhere and that's even if you are unable to mend it.
liquorix kernels are supported extremely well and are primarily geared for desktop and compiz(even if not intended)..no crashes. NO luck with it......well just keep the install extremely straightforward and try again.......and maybe for the last time.
radeon 3000 is pretty old but powerful for desktop usage.........i suggest you try downloading and installing amd drivers from their website.
Tinkering with fgrlx on a sane system will make you insane and trying to mend it on a mainline kernel.......well you get the point!!
http://askubuntu.com/questions/162616/s ... ne-kernels