Public bug reported:

Running Ubuntu 8.10 (also experienced in 8.04) with an ATI Radeaon X1600
Series I manage my display settings using Catalyst Control Center
Version 2.1, Driver Version 8.54.3 (downloaded through add/remove).
Using this application my display is set as Multi-Display Big Desktop
left of display 1 a Desktop area of 3360 x 1050 and a refresh rate of
preferred.  My screen saver is set to random and to activate after 10
minutes.  My display sleep is set to activate after 40 minutes.

When away from the computer greater than 40 minutes and the display
sleep is triggered upon my return the display is no longer a spanned
dual display.  I now experience a cloned display however display 2 has
the mouse keeping center focused and the display moves instead of the
mouse.  In addition to display 2 having these issues, on display 1
everything from now appears in a 1680 x 1050 resolution.  I generally
have one panel on display 2 and 1 panel on display 1.  My panel from
display 2 remains normal and remains now on the bottom of display 1,
which contains the combined image.  My panel that was on display 1 now
docks itself on top of my panel from display 2 but the graphics are
entirely useless as it now has a corrupted image driver effect to it.
To describe the purpose of the two panels: display 2 carries the panel
with Applications, Places, System, and Applets, display 1 carries the
panel with the workspace switcher, fast user switcher, and my launcher
icons.

I would love to help assist with resolving this bug please let me know
if there is any further information to guide us to finding the cause.
I'm also curious to know if anyone else has experienced this as my
google search and search here have not found anything.

** Affects: ubuntu
     Importance: Undecided
         Status: New

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Dual (Span) Display Fault After Display Sleep [ATI]
https://bugs.launchpad.net/bugs/339418
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