I have the same problem after updating to Xubuntu Intrepid.
My laptop is a Thinkpad 61s with an Intel 965GM chipset. Older versions
of Xubuntu had no problem handling the external display correctly, but
after updating to Intrepid, X always starts using the resolution of the
internal display (1024x768), even if the laptop lid is closed.
Thanks to the workaround proposed above, I'm at least able to switch to
the correct resolution after login:
xrandr --output VGA --mode 1680x1050
Bug this bug is still very annoying, an it's a real killer for innocent
people updating their Ubuntu that aren't experienced enough to find this
bug report and apply the workaround.
Please raise the importance of this bug to "critial". It's a real
showstopper for laptops using a 965GM chipset!
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[INTREPID] 965GM gives a wrong screen resolution on laptop used with an
external display
https://bugs.launchpad.net/bugs/272669
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