This is reported fixed in the latest fglrx driver, which will be rolled
out in Gutsy soonish.

   - 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 => High
       Status: Unconfirmed => In Progress

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Feisty crashes at login screen after enabling the proprietay driver
https://bugs.launchpad.net/bugs/96652
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