Using Natty with new kernel, the issue seems to be fixed:

 $ uname -a
Linux steros 2.6.38-3-generic-pae #30-Ubuntu SMP Thu Feb 10 00:54:59 UTC 2011 
i686 i686 i386 GNU/Linux

Thanks!

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xorg-server in ubuntu.
https://bugs.launchpad.net/bugs/683398

Title:
  [drm:atom_op_jump] *ERROR* atombios stuck in loop for more than 1sec
  aborting

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