For me this problem is not fixed. I'm still having this same problem
with a fresh install of Hardy (Gnome, not KDE) on a Dell Intel machine
(Intel graphics). Logging out either once or twice hangs the system
consistently, and I can't access it through keyboard or network and have
to hard reboot. Sometimes Ubuntu fails to boot after I restart and I
have to go into rescue mode. Apparently people are having the same
problem with ATI graphics cards.
** Changed in: xserver-xorg-video-intel (Ubuntu)
Status: Fix Released => Confirmed
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[gutsy] X crash (low graphics mode) when logging out and in several times
consecutively
https://bugs.launchpad.net/bugs/196560
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