The new ati driver worked for me as well.
Converted it to .deb using the --buildpkg Ubuntu/hardy, and installed the 
xorg-driver-fglrx and the amdcccel.
After that finally i can logout without anything hanging.

I also needed to do and "ldconfig" so OpenGL would work.

-- 
[hardy] No logout possible in KDE4
https://bugs.launchpad.net/bugs/198220
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