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xorg-server-1.9 and xf86-video-ati-6.13.2 seem to work with kernel-2.6.33 for now. But I have graphics bugs in kwrite.
I also have some graphics performance issues mostly with task manager and konqueror. Mouse movement triggering some mouseover effects often leads to high cpuload interrupting video playback. Could this be related to the kernel ati issue here? I had those problems with task manager before with xorg-server-1.7.6, too.
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Just an update:
The freezing bug has likely been fixed for everyone who has a radeon (r3xx) card. On the 23rd of october Alex Deucher posted a patch ("Make sure MC vram map is >= pci aperture size") which fixes the issue for a number of people, including me.
Please see fdo-bug #28402 for more information.
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Just in case confirmation should be needed: that patch fixes the problem for me (radeon mobility 9600 card).
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