I am also experiencing this issue in the Kubuntu Hardy Beta on my Dell
D610 since I switched to the fglrx driver; the ati driver seems to work
without issue.  This machine has used the fglrx driver fine under Ubuntu
Edgy, Feisty, Gutsy, and Hardy Beta.  IThe problem is only present with
the Kubuntu install, not with vanilla Ubuntu.

The initial description matches my machine's symptoms perfectly.  Any
session ending action (log out, restart, shut down--but not "start new
session") causes a blank screen and unresponsive input.  Ctrl-alt-
backspace does not restart the X session and ctrl-alt-F1 does not switch
to a terminal.  The machine will remain like that indefinitely.  But
interestingly, I have found that pressing the power button DOES
instigate an apparently normal shutdown procedure, even once all other
input has frozen.  My machine has no other problems with the fglrx
driver.

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[fglrx] freezes upon Logout or Switch user [patch]
https://bugs.launchpad.net/bugs/118605
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