Still on the hunt for a solution and came across this bit-o-knowledge :
http://wiki.cchtml.com/index.php/Ubuntu_Gutsy_Installation_Guide

 Attention: Suspend/Hibernation will not work

With Gutsy release, there's a big problem using the ATI proprietary
drivers. The Suspend/Hibernate function will stop working. The problem
is due to the new SLUB allocator incorporated in 2.6.22 / 2.6.23 Kernel.
There are no workaround, except:

- Return to Feisty (with 2.6.20 kernel, and apply specific solutions:
see Feisty installation guide).

- Use default Mesa Drivers (the easiest way is to disable ATI driver
from Restricted Driver Manager).

- Recompiler your Kernel to use SLAB.

Unfortunately some new ATI cards couldn't start X with Mesa drivers, so
the only workaround is returning to Feisty.

The problem will be solved in the next ATI driver release.

-- 
gutsy on hp compaq 6910p does not suspend or hibernate
https://bugs.launchpad.net/bugs/139865
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