After reading the URL I told about in my comment #4.
I read about KMS and I gave disabling KMS a try... and it fixed the symptoms.

radeon.modeset=0

I diff'ed output of dmesg between the running kernel with KMS and without KMS.
I removed useless lines.

It's attached as dmesg-KMS.diff

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2.6.32-16.25 video corruption on radeon
https://bugs.launchpad.net/bugs/538119
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