I have exactly the same problem with my Fujitsu M1437G (ATI X700).

sudo shutdown -h now doesn't help to have a nice shutdown.
The screen becomes full of white,yellow lines and all the commands are useless 
(CTRl+BACKSPACE,.... nothing works).

The only solution is the power button that is a bit brutal.

This problem is already unsolved in the feisty snapshot.

-- 
freeze during extinction
https://launchpad.net/bugs/72169

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