Hello everyone,  I was playing around with this bug earlier today and I
believe I've made some progress as locating it.  By chance I disabled
power management for my monitor, Ubuntu 12.04 has no screen saver so I
didn't worry about that, in order to watch a movie without interruption.
As luck would have it whenever I enable power management for my monitor
I have the video problem; yet when I disable it the problem vanishes.  I
am currently using the Xorg-edgers ppa to have a heavily updated version
of the open source ATI/AMD driver and I experience no issues anymore.
Also, this ppa installed 3.5 kernel which appears to be behaving quite
well.  Even flash plays at full screen now which is amazing.  So as a
possible band-aid until the problem is fixed I would suggest disabling
power management for your monitor - much easier than recompiling a
kernel or wading through a git tree.  Hope this helps!  There wasn't any
error messages generated for those interested - I experience the problem
just like everyone else...

System Specs:
AMD Sempron 2600+ (oh yeah!  smokin')
ATI Radeon HD 3650

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https://bugs.launchpad.net/bugs/993187

Title:
  ubuntu 12.04 completely freezes frequently.

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