Comment 2 for bug 417599

I had the same problem (Karmic Alpha 4 on a Thinkpad X40 here), and I worked around the problem by adding the following line

    return 1

in /usr/lib/pm-utils/sleep.d/98smart-kernel-video :

# Test to see if the kernel has a video driver that is smart enough to
# handle quirks without external assistance. If it is, remove the quirks.
have_kms()
{
    return 1
    # if we are running with a KMS-enabled video driver, we should not
    # attempt to run any quirks
    [ -d /sys/class/drm/card0/device/graphics/fb0 ] || return 1
    remove_all_video_quirks
    add_parameters --quirk-no-chvt
}

-> it forces using quirks even with KMS enabled.

It worked for me, but I'm not by any mean knowledgeable in all that stuff...