I don't have the time neither the ability to produce an helpful
backtrace, however I can confirm that disabling the "Desktop Effects
(compositing right?)" solves the issue for me. I was working without it
for quite a lot now, but after kde 4.2 went to the backports I wished to
try it with the effects... Result: (almost) immediate lock. I disabled
it again and everything works good again. I certainly can't speak
technically, but it has something to do with effects for sure.

This bug, at least for ati users with open source driver, wipes out most
of the benefits of the new kde... Really hope is solved for Jaunty...
Don't give up ;-)

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[X1650 Pro] Xorg lockup when using xserver-xorg-video-ati                    
1:6.9.0+git20080826.a3cc1d7a-2ubuntu3
https://bugs.launchpad.net/bugs/276518
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