I have similiar problem
dist: karmic
pkg: latest intel
device: Intel GMA X4500MHD (I'm not sure with MHD :-D)

only if I change lower res to upper (e.g. 800x600 to 1680x1050)

KMS enabled

** Attachment added: "Obrazovka.png"
   http://launchpadlibrarian.net/36713821/Obrazovka.png

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[G45] [Jaunty alpha3]Compiz issue: change to  higher resolution cause distorted 
screen
https://bugs.launchpad.net/bugs/326104
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