I'm happy to report that upgrading to kernel 2.6.30-9 indeed solved the
problem :)

Many thanks

  Morg

-- 
[gm45] console freezes when attempting to start second instance of Xserver with 
UXA enabled
https://bugs.launchpad.net/bugs/381960
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which is subscribed to xserver-xorg-video-intel in ubuntu.

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