Updating to
xserver-xorg-video-intel                      2:2.11.0-1ubuntu1~xup
from the Ubuntu-x-swat PPA does not resolve the bug.

Adding in xorg.conf
  Option "DRI" "false"
seem to workaround the problem

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https://bugs.launchpad.net/bugs/698120

Title:
  Dual head corruption on 2.6.37 lucid backport

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