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

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