I was experiencing this problem with an ATI X700 on Kubuntu 7.10 with fglrx 
driver.
I tried the solution explained in 
http://ubuntuforums.org/showpost.php?p=4300658&postcount=3
It works well for me now.
So try the following :

sudo /usr/sbin/update-rc.d -f atieventsd remove

-- 
log out or switch user results in crash
https://bugs.launchpad.net/bugs/107115
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