I too got this bug and haven't found a solution yet.

   Dist: Kubuntu 8.04.1 Fully upgraded
   Graphics card: PowerColor (ATI) HD3870 SCS3
   Tested drivers: fglrx 8.3 through 8.9

Symptoms: When switching user the screen goes black and the system is totally 
unresponsive, including the keyboard. Not even caps-lock trigges the caps-lock 
light. The only thing that works is the reset button and to hold the 
powerbutton until it shuts down. Shutdown or restart works without problem (I 
have fixed the problem with atieventsd, see bug 118605).
If i use the vesa or radeonhd drivers everything is ok. But then I got no 3D 
acceleration, which I think would be nice...

This bug is really annoying to me, as we are switching users a lot on
this computer. It started when I bought this card. I got a ATI X600
before, and that didn't suffer from this bug at all.

Anything else I could provide to help solving this bug, or at least get
it triaged?

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Switch User freezes at blank screen
https://bugs.launchpad.net/bugs/112518
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