Same problem here. There seems to be a problem switching back to text mode or either saving or restoring the text mode settings.
I can add the following:
Originally Posted by Plagman
If you start a fresh X session and try to switch to VT1 right away, does the problem immediately reproduce? Or do you have to use your computer for an extended period of time before it starts showing these symptoms?
The problem doesn't seem to be immediate, but it happens pretty soon.
I tried launching the X server by just typing X on a console (no desktop or window manager at all). After launching, I could switch to text mode immediately, but after several tries the monitor went into power saving mode instead of text mode. Switching back to X with Alt+F7 recovered the screen. Typing blindly while in the console works, which means the system is not hung.
In my case, when starting a KDE session and trying to switch to a text terminal after it has loaded, the problem is immediate.
Edited to add: The above applies to 295.33 by the way.
260.19.36 worked but I am unable to run it any longer as I have just upgraded my distro.