This problem has been bugging me for a while now, and I've yet to find a solution, so I thought that I might ping the forum, here.
I have an old Gateway 400SD4/P4 (Brookdale)/ATI Radeon Mobility M6 LY, currently running Fedora 14 (been leery of upgrading on such an old machine...). I've never been able to get suspend/resume to work; the video borks when the system comes back up. I've simply disabled it at this point, but it would be a nice feature if it did, in fact, work. Other than that, the laptop works great (thanks devs)!
Go easy on me; I'm by no means a power user, but I don't have a problem figuring things out (so long as I don't break anything too badly in the process). I don't think that it matters, but I've been playing around with fluxbox rather than gnome lately. I use Gnome Power Manger in both cases, and experience similar behaviors.
I think that the problem is with the open sourced video drivers, though AMD doesn't seem to provide any Linux drivers for the card. I wonder if anyone else has had a similar experience and found a workaround.
Thanks for the help!