I can confirm it as well and I find it as very important for me. We share this 
PC home and we all are often  login and just switch users. I would appreciate 
any other solution than turning back to windows. If this the aim of ATI, they 
will probably succeed until I will buy new PC with NVIDIA :-)
I have HD 2600 XT with 9.04 Jaunty amd64 and this problem is with latest ATI 
drivers as well as with the fglrx driver offered by Ubuntu. 
If I could be helpful with this bug, I will.

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[fglrx]Computer freeze when switching user
https://bugs.launchpad.net/bugs/290704
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