i'm having a similar problem on a k8m800 based laptop, even with the actual 
driver.
what i see:
- with default xorg.conf: "busy" cursor off-center, hanging after some seconds, 
laptop frozen
- with "openchrome" specified in xorg.conf: idem
- with "vesa" specified in xorg.conf: idem
- with "openchrome" and resolution 1024x768 specified: "busy" cursor centered 
freezing after some seconds, a light shade of the gdm-screen (i can discern the 
username entry field), i can hear the gdm drums sound; if i move the mouse 
(touchpad) it draws a new frozen "busy" cursor somewhere else on the screen, 
not deleting the first one; there is also response to setting caps-lock on the 
keyboard: the led will go on after more than a minute.
- with "vesa" and resolution specified: works smoothly.

i tried setting the following options one by one, which didn't solve the 
problem:
        Option "AccelMethod" "EXA"
        Option "DRI"    "false"
        Option "EnableAGPDMA" "0"

i attach my xorg.conf, xorg.0.log and a file kern.log with the last
lines of kern.log

** Attachment added: "Xorg.0.log"
   http://launchpadlibrarian.net/17976222/Xorg.0.log

-- 
Intrepid Alpha 5, HP Mininote 2133, Live CD, X Server Hangs after Boot
https://bugs.launchpad.net/bugs/267115
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