I had the same problem on an AMD64 (Feisty Final) system wit an ATI
Radeon Xpress 200M with xorg-driver-fglrx (7.1.0-8.34.8+2.6.20.5-15.20).
Changig the user or logging out killed my machine. The only way to
change the user was to kill X with Strg + Alt + Backspace.

After installing the newest driver 8.36.5 from April 18th, following the
ATI howto from http://wiki.cchtml.com/index.php/Ubuntu everything works
fine.

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Logging out X hangs system
https://bugs.launchpad.net/bugs/45857
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