Simon, could you please test if the issue goes away after adding this to
your /etc/X11/xorg.conf:
Section "Device"
...
Option "ForceEnablePipeA" "true"
EndSection
Laura, please see bug #138256 and file a new bug following the instructions in
the [Update] section of that bug's description, and I can add a quirk for your
hardware too.
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[Hardy] closing lid breaks X (jumping cursor, sluggish, high cpu usage ... )
https://bugs.launchpad.net/bugs/156824
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