This sounds like exactly the trouble I'm having, but on my 8.04 test
machine, not my 7.10 machines.

gnome-panel locks up, only notification area icons work (except for the
exit/quit button, it doesn't respond). I have to ctrl+alt+backspace, at
which point the panel doesn't come back. Next time it crashes I'll see
if alt+f2 works, but from what I recall it doesn't. I can always just
leave a terminal window open on the desktop so I can kill the process
that way.

After restarting x, when I sign in of course gnome-panel doesn't come
back.

Some system variables:
- ATI 9800 Pro running open source ATI drivers and compiz fusion
- single 1600x1200 display
- gnome-panel 1:2.21.5-0ubuntu1

-- 
Gnome-panel hangs and allocates all possible ram.
https://bugs.launchpad.net/bugs/154504
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