I am having the same problem on an IBM ThinkPad T60 running up to date Lucid.
Here is the lspci output for the video card:

01:00.0 VGA compatible controller: ATI Technologies Inc M52 [Mobility
Radeon X1300]

When i added radeon.modeset=0 with the kernel options, the problem appears to 
have gone away,
and has stayed away for about 12hrs.

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[RV515] [LENOVO T60] external screen display shows "shivering", horizontal 
refresh offset
https://bugs.launchpad.net/bugs/541501
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