After updating to the latest BIOS 1.32 and Ubuntu 11.10 I can now successfully 
boot into Ubuntu without using acpi=off. I can even leave Optimus switched on 
in BIOS and Ubuntu seems to be using the Intel card when the nvidia driver is 
not installed.
I'm booting with legacy BIOS mode (not UEFI), both virtualisation options 
turned on, Optimus turned on with OS detection turned off.

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https://bugs.launchpad.net/bugs/776999

Title:
  [Lenovo W520] laptop freezes on ACPI-related actions

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