I had a similar bug but on different hardware. Eventually I ended up manually installing lightdm 1.3.3. It fixed the hang problem.
Came here to say exactly that. Played Rescue on Fractalus for hours on the Atari 8bit.
Link to Original Source
"Our analysis identifies several parameters from the drive's self monitoring facility (SMART) that correlate highly with failures. Despite this high correlation, we conclude that models based on SMART parameters alone are unlikely to be useful for predicting individual drive failures. Surprisingly, we found that temperature and activity levels were much less correlated with drive failures than previously reported."