Ok maybe my comment above that 
POST_VIDEO=false
SAVE_VBE_STATE=false
in /etc/default/acpi-support as given abave by jkyamog is the solution, needs 
to be corrected:

Now when i do 
$ fglrxinfo I see:

Xlib:  extension "XFree86-DRI" missing on display ":0.0".
display: :0.0  screen: 0
OpenGL vendor string: Mesa project: www.mesa3d.org
OpenGL renderer string: Mesa GLX Indirect
OpenGL version string: 1.4 (2.1 Mesa 7.0.1)

ie i am using the mesa open-source driver ...
and lsmod does not show the fglrx driver anymore - 

I believe before i added those two lines in /etc/default/acpi-support ,
i saw fglrx in lsmod listing.

-- 
[gutsy] fglrx breaks over suspend/resume
https://bugs.launchpad.net/bugs/121653
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