I can confirm this bug too with ATI RV350 using ati driver. This bug
occurred when I was struggling with Compiz and desktop effects. I also
could type Ctrl-Alt+backspace and see some failing notes scrolling in
the console but couldn't register the significance of them. I have the
impression that xorg is looking for a second monitor or a TV attached to
the video driver.

** Attachment added: "All the Xorg.log files that I have here."
   http://launchpadlibrarian.net/10055087/Xorg.x.log.zip

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logout hang xserver with vesa and ati open drivers
https://bugs.launchpad.net/bugs/119635
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