It seems that it was a bug in input subsystem of xorg and not in device driver.
Resent xorg updates fixed the issue - there was no useful info in kdm error log
any more after crashes - but config files were corrupted.
Thanks to dpkg-reconfigure magic the problem is finally gone - uptime for ~3
days without crashes.
** Changed in: xorg (Ubuntu)
Status: Incomplete => Fix Released
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xserver-xorg periodically segfaulting after upgrade to 8.04
https://bugs.launchpad.net/bugs/229276
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