Was Hardy a clean install or did you upgrade to it?  That xorg.conf
isn't a Hardy-style one.  The reason the external display didn't work is
likely because your xorg.conf is only configured for one display.  Hardy
should have by default set up one like this (see attachment) to work
better for hotplugging.  I have a GM965 as well, so maybe try backing up
your xorg.conf and testing with the one I attached?

If it's an upgrade, it really would be nice if it gave the option of
changing the config.  I know the reason it's not changed is to avoid
adding regressions, but sometimes changing can be good.

** Attachment added: "xorg.conf"
   http://launchpadlibrarian.net/17734881/xorg.conf

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Need to Restart X (CTRL+ALT+BKSP) to turn on ext monitor / projector
https://bugs.launchpad.net/bugs/271626
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