This bug was fixed in the package xserver-xorg-video-ati -
1:6.12.99+git20100126.e5933fd7-0ubuntu1

---------------
xserver-xorg-video-ati (1:6.12.99+git20100126.e5933fd7-0ubuntu1) lucid; 
urgency=low

  * New upstream git snapshot 20100126 (master) up to commit
    e5933fd7, includes:
    + [3a30210d] RS4xx: fix 200M freezes on VT switch if CRTC is disabled
      (LP: #333377, #494672)
    + Speedups for r600
    + Fixes to various dpms / incorrect resolution issues
    + Fixes to low memory EXA; fix NoAccel to work with KMS
 -- Bryce Harrington <br...@ubuntu.com>   Wed, 27 Jan 2010 17:15:02 -0800

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: Confirmed => Fix Released

-- 
[Radeon Xpress 200M] VT switch freezes X
https://bugs.launchpad.net/bugs/494672
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