Confirm that I have the exact same bug, running latest Hardy Heron 8.04
with ATI X300 open source ati accelerated driver (desktop).

As numerous people have stated before, running gnome-power-manager
through Alt+F2 or Terminal prevents the hang up. It seems to be an issue
with how gnome initiates the power manager for the first time

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Quit button freezes screen but does not present Log out etc. options dialog
https://bugs.launchpad.net/bugs/150846
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