I have experienced a similar issue, and I've concluded the problem is an
interaction between xrandr and the ATI fglrx drivers.

My video card has a TV output, and the display flickers whenever xrandr
probes the card. According to Bug #134365 the Intel driver suffered a
similar problem, way back during the gutsy release.

I have my card connected to the VGA port on a Sony TV, so it's not a
standard LCD display. The TV may not respond in the same manner as a
standard flat-panel or monitor.

`xrandr -q` causes the flickering. When I run certain applications,
notably "Crossover Linux Standard" and "Display Preferences", the
display flickers constantly and the one of my CPU cores is 98-100%.
Luckily I have a multicore or it would lock up my machine.

I deactivated the ATI driver, purged all traces of fglrx with aptitude,
and switched to the F/OSS radeon driver and the problem went away. I can
open Display with only a single quick flicker of the screen and
applications running in Crossover no longer consume all of a CPU core.
Of course, I've lost 3D application performance in Blender, and enabling
Compiz gives me a "white screen of death" so it's a painful workaround.

Perhaps some of the fixes that were used in Bug #134365 might apply to
the restricted fglrx drivers as well.

-- 
Opening the display preferences dialog, almost freezes the operating system
https://bugs.launchpad.net/bugs/370563
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