Since it's a holiday today, I decided to do some tweaking. First on the list is to enable horizontal and vertical scrolling. Am using this xorg.conf as a guide.
Also foolishly upgraded hoary to breezy. I ended up with a non-working X. The culprit was missing font.dir on the new font directory location -> /usr/share/X11/fonts. Breezy also does not include mkfontdir and mkfontscale so I had to download from an existing install. So far everything seems to be working.
The good news is the mouse seems to work reliably on wakeup after suspend to disk/RAM now. Still using the stock xorg ATI driver's and will try using the fglrx binary later on and see if it doesn't break the suspend-resume .
The breezy kernel is based on 2.6.12 and *seems* to be snappier than the 2.6.10 series. Still contemplating if it would be worthwhile to do a custom compiled kernel to make it some what lean and mean.
More on this later...