Same issue here on a MSI Wind U100 with 945GME as DjDarkman describes it

The osd brightness keeps shifting up and down - if I tune it down with my 
laptop key, it stops.
also the lcd brightness switches between levels (flickering)

What it looks like: youtube.com/watch?v=ipD2rQwJpM0

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[i945] Screen flickers after jaunty update
https://bugs.launchpad.net/bugs/413399
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