I switched to the i810 driver and loaded the 915resolution package to
display resolution too 1280x800. Now shutdown/restart/hibernate issue is
completely got resolved for my laptop 700m.

Below are step to switch back to i810 drivers.
Issue following command either from the command line or by botting in recovery 
mode

sudo dpkg-reconfigure xserver-xorg

Select i810 graphics driver.

This will give you 1024x768 mode, to get resolution 1280x800 install
915resoluation using following command.

sudo apt-get install 915resolution

Then edit /etc/default/915resolution to contain:

MODE=auto
XRESO=1280
YRESO=800

And reboot your system.

This worked for me. Refer below URL for more detail
http://wiki.ubuntuforums.org/showthread.php?t=579781&page=9

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Gutsy shutdown doesn't
https://bugs.launchpad.net/bugs/119308
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