The kernel upgrade did not work for me - I installed the ppa kernel 
2.6.35-22-generic-pae and the defect remains.
It works a bit different for me - after the boot, everything is OK. As soon as 
I close the laptop lid and re-open it, the whole screen starts to flicker in 
random intervals (aprox. 1 in 3-4 seconds) and the log is full of "Skipping 
EDID probe due to cached edid" errors.

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Xorg is unusably slow and flickery
https://bugs.launchpad.net/bugs/531590
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