I can say that the problem is even more severe for me. I get hard locks
if I don't use EXA on my T42 with a fresh install of Ubuntu 9.10. The
live cd and install worked fine, then I logged in, connected to my wifi,
enabled encrypted swap and rebooted. I could get to gdm, but then after
authenticating the computer would hard lock. Using EXA allowed my to
login successfully and everything seems to be working ok.

$ lspci|grep ATI
01:00.0 VGA compatible controller: ATI Technologies Inc Radeon Mobility M7 LW 
[Radeon Mobility 7500]
(II) RADEON(0): Detected total video RAM=32768K, accessible=65536K (PCI 
BAR=131072K)
(--) RADEON(0): Mapped VideoRAM: 32768 kByte (64 bit DDR SDRAM)

-- 
(EXA and 32MB) certain windows drawn garbled when XAA is used
https://bugs.launchpad.net/bugs/426582
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which is subscribed to xserver-xorg-video-ati in ubuntu.

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