Could you try adding the following to your /etc/X11/xorg.conf:
Section "Device"
Driver "intel"
Option "DRI" "false"
Option "Tiling" "false"
EndSection
Could you attach the logs. Also if this does not work. Can you first
update your system with the latest kernel and all other packages. Then
try again.
--
[West Lake] Ubuntu 8.10: System unable to detect optimized graphic resolution.
https://bugs.launchpad.net/bugs/338598
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