Ok, this issue has come back with the latest kernel in lucid. I was able
to notice the difference because I did try displaying immediately after
upgrading kernel to 2.6.32-30. Since I had the previous kernel installed
as well, I booted back to 2.6.32-29 and don't see the problem. With the
new kernel, the same symptoms are back (i.e. laptop completely hangs as
soon as you connect the external display, irrespective of whether the
display is on or off).  I don't know what are all the changes with the
new kernel, but this seems to have gone back..
I also checked if the previous work around (booting with additional
kernel parameter acpi_osi =!"Windows 2006") works but unfortunately that
didnt work with 2.6.32-30 kernel.

I think this needs to be addressed soon since lucid is a LTS release (I
plan to use lucid since I use this laptop extensively everyday).

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https://bugs.launchpad.net/bugs/512387

Title:
  [gm45] System Hangs on Connecting External Monitor

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