It seems that there exists a workaround for this problem, which involves
running

aticonfig --acpi-services=off

after "aticonfig --initial".

I have tested this on ubuntu 8.10 (32-bit, catalyst 9.3) and ubuntu 9.04
post-beta (64-bit, catalyst pre-9.4).

-- 
fglrx versions newer than 8.543 cause system hang and panic
https://bugs.launchpad.net/bugs/314600
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