please have a try with latest AMD/ATi drivers ver. 8.42. with those
shipped with Ubuntu Gutsy 7.10 I experienced this problem as well,
however after upgrading I can again suspend and hibernate without any
issue.

a prepacked version from ubuntu repositories is not yet available (it
will be in some time) in the meantime you can download them from:
http://www2.ati.com/drivers/linux/ati-driver-
installer-8.42.3-x86.x86_64.run

please remember to run aticonfig --initial after installing and also
that after each further kernel update you will need to re install them
as far as the package will not be provided directly from ubuntu
repositories.

** Changed in: linux-restricted-modules-2.6.22 (Ubuntu)
       Status: Confirmed => Fix Released

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suspend-to-ram problems with fglrx module loaded
https://bugs.launchpad.net/bugs/133363
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