I can confirm the problem on my DELL xps m1330 machine:

ch...@chris-xps:~$ lspci | grep Graphic
00:02.0 VGA compatible controller: Intel Corporation Mobile GM965/GL960 
Integrated Graphics Controller (rev 0c)
00:02.1 Display controller: Intel Corporation Mobile GM965/GL960 Integrated 
Graphics Controller (rev 0c)

I installed manually xorg intel driver v2.6.3 and it fixed the problem.
I don't know if you can package this version for jaunty but maybe you
can backport the fix (after figuring out what the problem is).

-- 
[i915] Jaunty - Intel video is not hot-pluggable
https://bugs.launchpad.net/bugs/315336
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