I too still have this problem after upgrading to 10.04 :-(

I've tried the solution of tweaking /proc/acpi/video/*/DOS, suggested in
this related bug: https://bugs.launchpad.net/ubuntu/+source/xserver-
xorg-video-intel/+bug/156824

And I've read the upstream bug:
https://bugs.freedesktop.org/show_bug.cgi?id=16706

But nothing's fixing it.

** Bug watch added: freedesktop.org Bugzilla #16706
   http://bugs.freedesktop.org/show_bug.cgi?id=16706

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[gm45] closing screen/lid results in flickering and high CPU usage by Xorg
https://bugs.launchpad.net/bugs/447803
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