Can you please test this package to see if it makes a difference?
http://people.ubuntu.com/~bryce/Testing/xorg-server/xserver-xorg-
core_1.3.0.0.dfsg-12ubuntu9~bwh1_i386.deb
Also, please attach your /var/log/Xorg.0.log, /etc/X11/xorg.conf, and
the output of lspci -vvnn
** Changed in: xorg (Ubuntu)
Status: New => Incomplete
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Gutsy: Screen flicker with intel 855GM video.
https://bugs.launchpad.net/bugs/154537
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