I also got the same problem...
It still affects Ubuntu 12.04 LTS Beta2.

I first encountered this with Ubuntu 11.04 OS.

Its has to be the kernel version and I only experience this with 64 bit
version 32 bit seems fine but slow.

10.04 and 10.10 with 64 bit is fine.

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https://bugs.launchpad.net/bugs/975931

Title:
  purple screen freeze with AMD 6850

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