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[devtrue <dtrueit@xxxxxxxxx>]

I have an ATI Technologies Inc RV630 [Radeon HD 2600XT] and was
experiencing the same problem.

I disabled RandR 1.2 and it seems to have fixed, or at least created a
workaround, for the issue. Perhaps it will give someone much smarter
than I am a chance to actually get to the bottom of the problem.

I added "EnableRandR12=Sfalse" (no quotes) to /etc/ati/amdpcsdb under
[AMDPCSROOT/SYSTEM/DDX] and added "Option      "EnableRandR12" "false""
(no outer quotes) to the device section of my xorg.conf. I restarted GDM
and went to the display manager from the System menu and it opened with
no problems. I was then able to setup my dual-head system, which is how
I got into this mess in the first place.

Attaching my xorg.conf

** Attachment added: "xorg.conf"
   http://launchpadlibrarian.net/26475769/xorg.conf

-- 
Display Preferences causes 100% CPU usage and does not open correctly
https://bugs.launchpad.net/bugs/366757
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