This bug appears to be fixed in vanilla 2.6.39. I built and installed
2.6.39 loosely following the instructions on
https://wiki.ubuntu.com/KernelTeam/GitKernelBuild and used Ubuntu-X ppa
for updated fglrx drivers. Booting to that, I no longer have this issue,
and am able to boot without any problems--AC or no.

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https://bugs.launchpad.net/bugs/775950

Title:
  fixing recursive fault but reboot is needed! upon boot (always
  reproducible on battery only, but sometimes on AC too)

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