I'm not very knowledgeable, but I've had my share of problems with ATI Xpress 200m rc410. My card is actually detected as: ATI Radeon xpress 200m PCIE 5955 by lspci
In my case a fresh installed of Squeeze a few months back had none of the problems you're having, but I did get this error in xorg0.log you are getting: (EE) RADEON(0): [dri] RADEONDRIGetVersion failed to open the DRM [dri] Disabling DRI. This is easily solved now, by installing firmware-linux-nonfree, firmware-linux and libdrm-radeon1. DRI should work now and you won't need to disable it in the xorg.conf file. I doubt this is your only issue, but try it. In my case, this provides 2d and 3d accel fine, but I still get a blank screen upon waking up from suspend and hangs before going into hibernation. Some xpress-200m-people have been able to solve "all" their radeon problems by using newer kernel from sid or experimental + Kernel modesetting: try getting the newer radeon driver from sid (you'll need a newer kernel as well, either 2.6.32-10 from sid or 2.6.33 from experimental). For this you will need to enable Kernel modesetting. add *radeon* to /etc/modules and put *options radeon modeset=1* in /etc/modprobe.d/radeon-kms.conf (you'll probably need to create the file). Report back when you can with your results Andres