Thanks Chen Chen. But I really don't wish to downgrade. And yes, from my
previous post, ATI-AMD has deprecated the ATI Mobility Radeon X1300; So
no fglrx option for my card. Hence the urgency to fix this issue.

This article:
http://www.phoronix.com/scan.php?page=article&item=amd_r500_power&num=1
published in March of last year is happy with the open source driver on
power management. Considers it comparable (or better) to fglrx. And it
was tested in the same laptop (Thinkpad T60) that I have. Unfortunately
that progress seems to have been stunted with 10.04. :(

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[ATI Graphics][Lucid] laptop runs hot, shorter battery life, fan always on
https://bugs.launchpad.net/bugs/563156
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