In my case, installing fglrx 9.8 from the amd website (after
uninstalling ubuntu fglrx driver in restricted driver manager) did the
trick. Xorg no longer freeze when playing a video and it correctly
resume from suspend. So this might be fixed in karmic or next release,
once ubuntu will add latest fglrx in repositories.

-- 
ATI Radeon HD 3670 Proprietary FGLRX Drivers break Suspend, Hibernate and major 
performance issues.
https://bugs.launchpad.net/bugs/363533
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to linux-restricted-modules-2.6.24 in ubuntu.

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