I'm wondering if this has more to do with the ati_remote attached to the
system. Lots of messages from the device, could be confusing things. You
could try doing this:

echo "blacklist ati_remote2" | sudo tee /etc/modprobe.d/myblacklist
sudo update-initramfs -u

Reboot and see if the problem persists. To revert this, do:

sudo rm -f /etc/modprobe.d/myblacklist
sudo update-initramfs -u

** Changed in: linux-source-2.6.20 (Ubuntu)
   Importance: Undecided => Medium
     Assignee: (unassigned) => Ubuntu Kernel Team
       Status: Unconfirmed => Confirmed

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System freezes on KDE startup
https://launchpad.net/bugs/91536

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