I can confirm that this issue is still present on Intrepid (kdm) using fglrx 
version 2:8.543-0ubuntu2.
I can also confirm that Ken4000's proposed solution works. I suppose that 
adding a patch against the GetServerAuthFile() function in 
/etc/ati/authatieventsd.sh could eventually fix this issue.

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Logout proces hangs
https://bugs.launchpad.net/bugs/38915
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