Hi, 
Don't know if this can help but I experienced this bug (as originally posted) 
on and Dell laptop 510m, with intel 855GM chip and "intel" driver on a fresh 
install of gutsy. Everything was fine when I was under feisty with i810 driver, 
so I switch to i810 driver and everything go back to normal ! Compiz fusion 
works great too and no problem with totem-xine video player.

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xserver-xorg-video-intel hangs the system when laptop lid is closed
https://bugs.launchpad.net/bugs/138256
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