I neglected to mention that to use the new power management feature on R700 and 
newer hardware (other than APUs) requires installation of the latest AMD 
graphics microcode (ucode) files to /lib/firmware/radeon
These are available at http://people.freedesktop.org/~agd5f/radeon_ucode/
Get the version ending in "smc".

R700 basically means Radeon HD 4000 series and newer. However note that
according to Wikipedia and
http://xorg.freedesktop.org/wiki/RadeonFeature/#index5h2 the Mobility
Radeon HD 4225/4250 is a RV620 chip, so anyone with one of those
shouldn't need the updated firmware files.

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https://bugs.launchpad.net/bugs/1042492

Title:
  Open source radeon driver causes laptop to heat up / run fan non-stop

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