Well, I can confirm it crashes only when NO USB Mouse is present.

The Problem apparently is also present on ArchLinux:
http://forum.archlinux.de/?page=Postings;id=20;thread=8265 There  is
also a temporarily fix for it - using AGP 1x Mode only.

Add The Following Line in your /etc/X11/xorg.conf in the "Device"
Section of your Graphic Adapter

Option     "AGPMode"                    "1"

This makes the bug less critical and I don't know how slow AGP 1x is
compared to 4x or 8x, but for new users who aren't experienced enough to
look for the right answers and edit conf-files, this bug is a real
showstopper.

-- 
[hardy] kernel 2.6.24-16-generic + radeon driver = system freezes
https://bugs.launchpad.net/bugs/220345
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