This is still happening in karmic with the driver from the KMS ppa, no matter 
that even XAA is specified (although I suspect it still uses EXA).
The only option to avoid is to to have EXA and EXANoComposite turned on, but 
then this makes everything horribly slow.

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[RV350] system freeze randomly unless XAA used
https://bugs.launchpad.net/bugs/349229
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