Yes, it's still an issue on lucid as of now. As a workaround I use fbdev, like 
this
$ sudo ln -s /etc/X11/xorg.conf.failsafe /etc/X11/xorg.conf

-- 
X hanging | radeon:radeon_read_ring_rptr: NULL pointer dereference at (null)
https://bugs.launchpad.net/bugs/496566
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