Sounds like a kernel problem.  Suspend/resume is handled in the kernel,
and restarting X does not fix the problem.  Moving to kernel.

Does this problem still occur on Ubuntu 12.04.1 "Precise Pangolin"?
What about on Ubuntu 12.10 "Qantal Quetzal" beta 2?

** Package changed: xserver-xorg-video-ati (Ubuntu) => linux (Ubuntu)

** Changed in: linux (Ubuntu)
       Status: Confirmed => Incomplete

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https://bugs.launchpad.net/bugs/584714

Title:
  Radeon 2600XT poor performance after suspend-to-ram

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