Problem seems to be fixed in Ubuntu Gutsy Gibbon 7.10 so I close this bug 
report.
Feel free to open it again if it still happens under Gutsy with the new Intel 
driver.

** Changed in: xserver-xorg-video-i810 (Ubuntu)
       Status: Incomplete => Fix Released

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when I close laptop lid, xorg takes 100% and never recovers
https://bugs.launchpad.net/bugs/98668
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