I am running the stable Gutsy 7.10 as well and have this same issue. I
have a Toshiba Satellite A105 with the Intel 945 chipset.

If I turn the affects off and then on again it seems to resolve the
issue for me as well.

I still haven't figured out how to get the login screen problems
resolved though. The options on the login screen are almost unusable
because I have to scroll through several screens to get to where I want.

I hope this is fixed soon.

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Large font in the GDM login text field after installing xserver-xorg-video-intel
https://bugs.launchpad.net/bugs/107320
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