This bug was fixed upstream in kernel 2.6.37.  From the changelog:

commit a93f344d3c04e4b84490c65f2a574387c593be40
Author: Alex Deucher
Date:   Mon Dec 20 11:22:29 2010 -0500

    drm/radeon/kms: reorder display resume to avoid problems
    
    On resume, we were attemping to unblank the displays before the
    timing and plls had be reprogrammed which led to atom timeouts
    waiting for things that are not yet programmed.  Re-program
    the mode first, then reset the dpms state.
    
    This fixes the infamous atombios timeouts on resume.
    
    Signed-off-by: Alex Deucher
    Cc: sta...@kernel.org
    Signed-off-by: Dave Airlie

Ubuntu 11.04 "Natty Narwhal" is using the 2.6.38 kernel.

This patch was also included upstream in kernel 2.6.36.3.  As Denis
mentioned in comment #6 that he could no longer reproduce the bug with
the Ubuntu mainline 2.6.36.1-natty kernel I suspect he either got lucky
or Ubuntu backported the patch.

Anyway, it's fixed now.  I've never attempted to install a newer kernel
version on an Ubuntu release, but I've read about other people doing it
without problems.  If you want to try it, it is probably wiser to use
the 2.6.36.x series rather than the 2.6.38.x series - you are less
likely to need a newer version of libdrm.


** Package changed: xserver-xorg-video-ati (Ubuntu) => linux (Ubuntu)

** Changed in: linux (Ubuntu)
       Status: New => Fix Released

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https://bugs.launchpad.net/bugs/647665

Title:
  Xorg freeze on Asus m51ta

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