michelem, I have the same issue but only when I use one of the VESA
resolutions using the vga kernel parameter. If I don't use this
parameter, I have standard VGA text mode (80x25) but usable VTs. This is
may be related to bug #147606 or bug #150797 or both.

I'll test xserver-xorg-video-intel_2.1.1-0ubuntu7~bwh1_i386.deb as soon
as today's updates have run through.

-- 
laptop hangs when switching video mode
https://bugs.launchpad.net/bugs/127101
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