The problem seems to be resolved (for me) simply by downgrading the
kernel, at least 2.6.31-22  (from karmic repos) works properly even with
the external monitor. I still use the x-retro driver, maybe it would
work with the official driver too.

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