I have fixed this problem for me. Dell Optiplex GX-150 1gz, 512mb ram,
Intel I815 graphics card. Ubuntu 9.04

I did a gksudo gedit /etc/X11/xorg.conf

added to the Device: section

Option      "DRI"   "off"

and save

This is the only way i found fixes the problem, and yes if i take that
out of the Xorg.conf then X will freeze and then the mouse freezes up.

-- 
[regression][rv280] black screen and console freeze when X starts - drm lockup
https://bugs.launchpad.net/bugs/67487
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which is the registrant for xserver-xorg-driver-ati.

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