I have the same problem and i915.modeset=1 works but only if I don't try
to play video.I have the latest 2.6.32-22 kernel.I can cause system to
crash or freeze when I try to play video or when I run system testing
utility,test bars and static!I haven't try mainline kernel yet!

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[855GM] GPU hang when an application tries to use XVideo
https://bugs.launchpad.net/bugs/554835
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