The problem still exists with the upstream kernel (2.6.35-999-generic).
The error messages are pretty the same:
Jun 24 21:57:32 silagu kernel: [ 232.484072] ondemand governor failed,
too long transition latency of HW, fallback to performance governor
** Changed in: linux (Ubuntu)
Status: Incomplete => New
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eeePC 700 Celeron: ondemand and conservative governor didn't work
https://bugs.launchpad.net/bugs/588019
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