I have an old Compaq laptop with this card: ATI Mobility Radeon 7500. I did a fresh Squeeze install about a couple of months ago. I experienced some problems with the radeon driver currently in squeeze (but I never got crashes), but upon switching to kernel 2.6.33+KMS everything went away. Please try this:
Get the newer radeon driver from sid (you'll need a newer kernel as well, either 2.6.32-10 from sid or 2.6.33 from experimental). For this you will need to enable Kernel modesetting. add *radeon* to /etc/modules and put *options radeon modeset=1* in /etc/modprobe.d/radeon-kms.conf (you'll probably need to create the file). (NOTE: if not installed already, get libdrm-radeon1, firmware-linux-nonfree and relevant mesa packages). Report back! Andres