I had the same problem (thinkpad R40, radeon mob. 7500, gutsy with all updates, 
radeon driver)
I am not using the fglrx driver which was implied as the culprit in some other 
very similar bug reports. I used the old Kernel from feisty for a while and 
that worked just fine for suspend, except that it broke a few other things 
(most notably atumounting usb-storage).

After reading this post I installed the hardy kernel and everything now
works as expexted.

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[Gutsy]Suspend-to-disk (hibernate) and suspend-to-ram do not work anymore
https://bugs.launchpad.net/bugs/156113
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