I'm suffering from same problem. The card I have is Mobility Radeon HD 4650,  
model of laptop is HP Pavilion dv7 2180us
System status: fglrx is loaded and compiz is being used. Latest xorg drivers 
are installed from PPA. Latest ATI driver is installed from ATI website (along 
with Catalyst Center)
Problems are: 
1. frequent freeze of the system. i have to hard-reboot each time, even magic 
syssrq key combination does not work. I keep my fingers crossed so that freeze 
does not happen in the middle of something important.
2. suspend: machine can go to sleep but cannot awake, black screen of death 
(BSOD)
3. hibernate works fine (can awake successfully) but that affects video4linux 
driver and webcam becomes not accessible.

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ATI Radeon HD 3670 Proprietary FGLRX Drivers break Suspend, Hibernate and major 
performance issues.
https://bugs.launchpad.net/bugs/363533
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