This has now been fixed in the upstream git tree:
http://cgit.freedesktop.org/xorg/driver/xf86-video-ati/commit/?id=268c848130ec1770bb645a74197b6aca7fc95abc
I think this can get into Intrepid really quick, and would be suitable for SRU
in Hardy.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Triaged => Fix Committed
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[M6 LY] System lockup when switching VT's or Resume from Suspend
https://bugs.launchpad.net/bugs/148408
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