Some good news on this bug finally. I downloaded and installed ATI
Catalyst 9.8 last night:

http://support.amd.com/us/gpudownload/linux/Pages/radeon_linux.aspx?type=2.4.1&product=2.4.1.3.5&lang=English

I was finally able to suspend/resume my machine w/ OpenGL compositing
enabled. This was after executing the following commands (to rewrite
xorg.conf):

cd /etc/
sudo rm xorg.conf
sudo aticonfig --initial

I have even upgraded to KDE 4.3 (kde4-config --version) and Linux
2.6.28-15-generic (uname -r) without any ill effects.

Again, I am running Kubuntu 9.04 64-bit on a Dell Studio XPS 16 with an
embedded ATI Mobility Radeon HD 3670. I hope this post helps someone.

-- 
[HD 2600/HD 3670/HD 4650/ Others?] fglrx + Kwin with OpenGL desktop effects = 
failed resume
https://bugs.launchpad.net/bugs/369042
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