Comment 36 for bug 107115

I've packaged the fglrx driver, and put the debs up for testing on Gutsy (linux-restricted-modules-2.6.22):

    http://people.ubuntu.com/~bryce/Testing/

Among the changes in this newer fglrx are fixes for freezes when logging out or switching users, and when switching to a console (e.g., ctrl-alt-F1). I don't know if it fixes the hibernation not working issue that ravanhagen reports.
tasadar_f said he had tried 8.37.6 already and found it did not fix this issue, so I would appreciate feedback from others if this fixes it for them.

These are the packages I installed in my tests: fglrx-control, xorg-driver-fglrx, fglrx-kernel-source, linux-restricted-modules-common, linux-restricted-modules-2.6.22

Also turn off Composite if you have it on (fglrx doesn't support it)
fglrxinfo and glxgears are useful to verify its working