I had the exact same behavior with a ATI 9800 Pro.  Tried a lot of
changes, nothing fixed it.

Utlimately I installed a nVidia 7600GT in the same box and the same
config.  As soon as I installed it and rebooted, the problem went away.
So it really seems located in the fglrx server.  There are reports in an
ubuntu thread that the same issue has shown up for owners of graphic
cards with an Intel chipset.

http://ubuntuforums.org/showthread.php?t=575591

-- 
Gutsy, can't use switch user, or start second x-server apparently
https://bugs.launchpad.net/bugs/157194
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