Turns out that all I had to do was downgrade to xserver-xorg-video-
ati_6.6.3-2ubuntu6_i386.deb to get rid of this bug.  No changes to the
configuration necessary.

Boy, am I glad this NUISANCE is finally over for me.

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[M6 LY] System lockup when switching VT's or Resume from Suspend
https://bugs.launchpad.net/bugs/148408
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