I have this issue as well.

Ubuntu 12.04, 3.2.0-53-generic-pae kernel
Catalyst Driver Packaging Version 8.96
AMD Radeon HD 7660D (A10 5700 APU)

I put this APU in two new builds, totally identical except that one has
ASRock FM2A85 and the other ASRock FM2A75. Only the build with the
...A85 mobo is affected.

Using 'xset dpms force off' to activate energy star power saving
funtions, or 'xset s activate' to blank screen will sooner or later
(often sooner) leave me with a running computer where i can not return
from the blank screen (and it is not just that I can not see the screen,
the keyboard is not responding, i have tried to safely shutdown using
keybindings, but it does not work).

Does not fix the issue:
'aticonfig --acpi-services=off' 

Setting this option in xorg.conf does not fix the issue:
"Option     "DPMS" "false"

All these things in combination does prevent the issue:
Put in my login script:
'xset -dpms &'
'xset s off &'
Put in xorg.conf:
"Option     "DPMS" "false"

But it does not fix the issue, because I only avoid screen freeze because I 
never enable the screen blanking/saving functions.
Right now I am using 'feh -FNY ~/.black.png' as a simple screen-blanking 
function instead.

Regards
Mikael

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https://bugs.launchpad.net/bugs/958279

Title:
  FGLRX DPMS support totally broken, fails to wake up the monitor after
  putting it to sleep.

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