I can confirm the bug in the last release of the driver from ATI (8.42.3) with 
Gutsy.
Shall we install the 8.37.6 version of the driver?  Is there any chance they 
(and I mean ATI) fix this?

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Switching users (switch user) blank screen on fglrx (ATI driver)
https://bugs.launchpad.net/bugs/98684
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