I was hoping that at least dmesg would show some error message after
crash.

Is there anything after crash in kdm.log?

Also there is quite important bug fixes for your card in the latest
code. if you want to try newer driver you can get it from
https://launchpad.net/~xorg-edgers/+archive/ppa and
https://wiki.ubuntu.com/KernelTeam/MainlineBuilds

-- 
drag and drop action causes immediate logoff
https://bugs.launchpad.net/bugs/531525
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