kubuntu, 9.04. The kernel in jaunty proposed did not remove the freeze for me. 
AMD64, I got the freeze after less than 15 min only typing text in kate 
(desktop effects enabled). 
Installed the 2.6.29.4 kernel ( 2.6.29-02062904-generic) and all is working 
like a charm now. 

Figuring out how to set up xrandr to have a dual head setup (no more
xinerama, and bigdesktop was fglrx only) was more difficult, but now
also that is working like a charm with KDE4!

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[RV250] Kubuntu: X Freezes with Radeon driver EXA/XAA Composite
https://bugs.launchpad.net/bugs/348332
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