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ATI/AMD FGLRX Driver causing suspend/resume/shutdown problems on Ubuntu

I have a Dell Studio XPS 8100 desktop with Nvidia M207(D12M2-25) GT420 (1G DDR3). I'm running a dual-boot with Windows 8 and Ubuntu 12.04.

I tried to use the ATI/AMD FGLRX driver (http://www.nvidia.com/object/linux-display-ia32-310.19-driver.html) on Ubuntu but this prevented my system from suspending and waking up correctly. Most of the time, the suspend would work but I would lose use of the keyboard, mouse and monitors when attempted to resume. Shutdowns usually fail.

It seems this is a somewhat common problem, since I see mention of it on various sites. The recommended path from many forum posts is to remove the nvidia drivers and use the standard ubuntu drivers. Of course I've done that but the performance of my system is diminished and the fan runs constantly.

I would really appreciate any help with this issue. I'd like to be able to run the nVidia driver or a reasonable alternative.

Other System Info: Intel® Core™ i7 CPU 870 @ 2.93GHz × 8 32-bit OS on Ubuntu 2TB Hard Drive 8GiB Memory

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AMD or Nvidia? Body/title is about AMD. Hardware-description/Links/tags about Nvidia. please clarify. – gertvdijk Dec 27 '12 at 23:34

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