With the latest .32 Kernel it looks like this issue is solved.

ci...@eee:~$ uname -a
Linux eee 2.6.32-20-generic #30-Ubuntu SMP Mon Apr 12 15:19:41 UTC 2010 i686 
GNU/Linux

-- 
[i915] drm boot error in lucid
https://bugs.launchpad.net/bugs/536827
You received this bug notification because you are a member of Ubuntu-X,
which is the registrant for xf86-video-intel.

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