You might try the latest version of the fglrx driver and see if it fixes
the problem.

Can you enable the hardy-proposed and hardy-updates repositories,
install EnvyNG so as to install the latest release of the driver?

If you can still reproduce the problem then you should report the problem to 
ATI:
http://ati.cchtml.com/

-- 
[fglrx] freezes upon Logout or Switch user [patch]
https://bugs.launchpad.net/bugs/118605
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