Could you possible test the latest v3.4 upstream kernel, which can be 
downloaded from:
http://kernel.ubuntu.com/~kernel-ppa/mainline/v3.4-rc1-precise/

Also, I've added this to the kernel team hot list, so it would be good
to know if the problem still exists in the latest mainline kernel.

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https://bugs.launchpad.net/bugs/925098

Title:
  [precise] bad interplay between X driver and 3.2.0 kernel

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