Same symptoms here as in bug description.

$ lspci -d 1002: -vvvmmk
Slot:   01:00.0
Class:  VGA compatible controller
Vendor: ATI Technologies Inc
Device: NI Caicos [AMD RADEON HD 6450]
Rev:    ff
ProgIf: ff
Driver: radeon
Module: radeon

Slot:   01:00.1
Class:  Audio device
Vendor: ATI Technologies Inc
Device: NI Caicos HDMI Audio [AMD RADEON HD 6450]
Rev:    ff
ProgIf: ff
Driver: HDA Intel

$ uname -a
Linux rlibby 3.0.0-15-generic #26-Ubuntu SMP Fri Jan 20 17:23:00 UTC 2012 
x86_64 x86_64 x86_64 GNU/Linux
$ lsb_release -a
No LSB modules are available.
Distributor ID: Ubuntu
Description:    Ubuntu 11.10
Release:        11.10
Codename:       oneiric
$ dpkg -s xserver-xorg | grep Version
Version: 1:7.6+7ubuntu7.1
$ dpkg -s xserver-xorg-video-radeon | grep Version
Version: 1:6.14.99~git20110811.g93fc084-0ubuntu1

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-ati in Ubuntu.
https://bugs.launchpad.net/bugs/586243

Title:
  Xorg freeze: "Failed to schedule IB" Radeon X1200

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-ati/+bug/586243/+subscriptions

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