The issue remains on Feisty-2.60.20-15-generic.

As the choice was to have a non-stable os or a non-stable os... I just
went for gusty and in my case I found that noapic nolapic parameters for
kernel boot seem to solve the problem on 2.6.22-7-generic

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Desktop freezes
https://bugs.launchpad.net/bugs/123741
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