Okay, this issue was caused by having two ATI Radeon HD3870's in my PC,
physically connected via a CrossFire cable. I physically removed one of
the GPUs from my system, did a fresh install of 9.04 and I am able to
logout with no problems. In my opinion, this is still a bug that needs
fixing, as I shouldn't have to remove parts of my system for Ubuntu to
work correctly.

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Ubuntu 9.04 Log Out broken
https://bugs.launchpad.net/bugs/366225
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