On Xubuntu 12.04, screen crashed exactly like shown on this video: 
http://www.youtube.com/watch?v=UuL9zjaGakM&feature=youtu.be. 
It only happened _after_ I logged out & tried to log in from login screen. 
It didn't happened right after booting, where user is logged in automatically 
(without prompting user for password).

A similar solution to the one suggested by candtalan (just above this
post) worked for me:

In a terminal type

sudo nano /etc/default/grub
find the line

GRUB_CMDLINE_LINUX_DEFAULT="quiet splash"

change it to

GRUB_CMDLINE_LINUX_DEFAULT="i915.modeset=0 quiet splash"

Type CTRL O to write the file Type CTRL X to exit
Then type

sudo update-grub
-----
Taken from here: 
http://askubuntu.com/a/37679/72828

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https://bugs.launchpad.net/bugs/949130

Title:
  Display corrupts and flashes when changing resolution on GMA X3000

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