I'm also having the same problem on a asus eeepc 1000h with ubuntu 9.10
.

When connecting an external monitor the system freezes, not even when I
remove the monitor again the system resumes. I have to restart the
computer. If the monitor is attached to the eeepc when booting it is
detected and used. The resolution on the eeepc lcd gets set to 640x480
though. If I try to change the resolution on the eeepc lcd the system
hangs again.

Following the advice from supojc and nick and removing all compiz-
related solved the problem.

-- 
karmic gnome-display-properties hangs for external monitor mode 1280x1024
https://bugs.launchpad.net/bugs/445100
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