I have just done a fresh install of Xubuntu 10.04 Lucid Lynx today and
also all updates that were available. I can confirm that this problem
seems to be resolved: I did not have any problems with video at all, and
all the updates are applied and system working correctly.

I have a Dell Dimension 9150, which is the same system as I reported
above. No new hardware changes or firmware updates have been done since
the original video problem reported above related to the Mesa driver.

Hope this helps.

-- 
After installing, there is no desktop. Only a pale blue screen with arrow 
pointer.
https://bugs.launchpad.net/bugs/351293
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