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0e1f616
(Get the code!)
I just upgraded to Ubuntu Hardy and found myself in the same situation. After I logout my computer freezes and my only way out is a hard reset. Things that I have done include:
1. Booted Hardy with the Feisty kernel. No changes.
2. Created a brand new user and tried login in and out. No changes.
3. Modified my xorg.conf file to force X to use the VESA driver ... success, no more freezes after logout.
Of course with this last option I get a sub-optimal desktop but this makes me conclude that the problem is X-related. My first call would have been to blame the new Intel driver in xorg since I have an ASUS P5E-VM mother board with the Intel G35 (3500) chipset. But several people report the same problem with non-Intel chipsets/boards so the problem is probably deeper than that, but definitevely X-related.