try this work around:
sudo aticonfig --auto-powerstates=off

and yes, i'm having the same problem on my T60
and this problem also exists with 2:8.561 direct from ATI

** Changed in: linux-restricted-modules-2.6.24 (Ubuntu)
       Status: New => Confirmed

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Problem with X if no power supply
https://bugs.launchpad.net/bugs/313714
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