Hi Saku,
This one is fixed in karmic, with a tiling fix to the kernel. It'd be
great if you could test karmic alpha-2 or newer and verify it is indeed
solved now.
** Changed in: xserver-xorg-video-intel (Ubuntu)
Status: Confirmed => Incomplete
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[i945GM] After loading background crashes back to GDM. Works with 'driver
"vesa"'.
https://bugs.launchpad.net/bugs/320821
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