For me anyway (from comment #8) turning off kernel modesetting does the
trick.

Modify the line in /etc/default/grub from something like:
GRUB_CMDLINE_LINUX_DEFAULT="quiet"

to something like:
GRUB_CMDLINE_LINUX_DEFAULT="quiet nomodeset"

Then do sudo update-grub.  But yea.. I am upgrading most of my machines
to lucid.

-- 
[i965gme] Freezes when attempting to switch to projector (or just detect them)
https://bugs.launchpad.net/bugs/500999
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