This is reported fixed by ATI in the newer fglrx:

 - Resolved issues since 8.34.8:
      + In certain AGP graphics cards the system no longer ceases to
        respond when switching from the X-Server display to a text console.
      + The screen no longer turns black if the X-Server is terminated
        from the text console. This condition was known to occur only on
        certain laptop configurations.  [ATI# 737-26829].
      + Logging out of a session to the graphical login manager no longer
        crashes the Xserver


** Changed in: linux-restricted-modules-2.6.20 (Ubuntu)
   Importance: Undecided => Medium
       Status: Unconfirmed => In Progress

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restarting xserver (or switching back to ctrl+alt+F7 from ctrl+alt+F1-6) 
hangs/crashes/freezes system with fglrx
https://bugs.launchpad.net/bugs/105191
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