I had this exact same problem. After much twiddling, I found a
workaround.

Make sure you have the sync rates set. The key setting for me was Option
"IgnoreEDID". I have BIOS A32.

Section "Monitor"
        Identifier      "Generic Monitor"
        Option          "DPMS"
        HorizSync       30-70
        VertRefresh     50-75
        Option          "IgnoreEDID"
EndSection

Additionally, you have to turn off the splash screen in
/boot/grub/menu.lst. Find the default boot entry and remove "splash"
from the end of the kernel line.

-- 
i810/intel xorg drivers hang Inspiron 1100
https://bugs.launchpad.net/bugs/117892
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