At least for my Mobility Radeon HD3200, where I'm sure to have been
affected by exactly this bug, I can say that Kubuntu Lucid Beta2/RC
works. Logout shows KDM login screen again as it is expected.

But I must also say that solving such critical bugs takes too much time.
When a critical system component hangs each time it is used, it cannot
be acceptable to wait one year / two releases until it works again.
Maybe responsible persons should check their priorities if there are not
enough people to help fixing issues. I like to test and report bugs, but
it makes no sense when critical bugs are not fixed and a system hangs
all the time so it is unusable.

-- 
In Kubuntu 9.04 Beta, when logging off the X does not come back.
https://bugs.launchpad.net/bugs/352804
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which is subscribed to xserver-xorg-video-sis in ubuntu.

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