I have the same chipset (ATI Radeon 9700, but it is rv350) and I am seeing the 
same artifacts as you. Thus marking confirmed.
There is a similar bug 
(https://bugs.launchpad.net/ubuntu/+source/compiz/+bug/272969) , though I do 
not know if it is a duplicate. But there is definitely a workaround that fixes 
this for me: Option "AccelMethod" "exa"
to the device section of /etc/X11/xorg.conf.

Please try if it fixes the issue for you. BTW:if it does not, the
quickest way to get rid of the artifacts is to get to another virtual
console and then back (alt+ctr+f6, then alt+ctrl+f7).

Also, I do not know if it matters that I do have compiz running - I can
of course test.


I hope I got the assignation and affected package right. If not, please 
reassign.


** Changed in: xserver-xorg-driver-ati (Ubuntu)
Sourcepackagename: None => xserver-xorg-driver-ati
     Assignee: (unassigned) => Andreas Mendyk (ubuntu-x)
       Status: New => Confirmed

** Changed in: xserver-xorg-driver-ati (Ubuntu)
     Assignee: Andreas Mendyk (ubuntu-x) => (unassigned)

-- 
Graphical artifacts present when resuming from sleep.
https://bugs.launchpad.net/bugs/293395
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