Workaround:

enable the xorg-edgers repository (sudo apt-add-repository ppa:xorg-
edgers/ppa; sudo apt-get update; sudo apt-get dist-upgrade -y)

Which gives you, at the time of writing kernel 3.7.0-7, which does not
suffer the issue.

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-intel in Ubuntu.
https://bugs.launchpad.net/bugs/1085168

Title:
  16 Bit colours / Banding on Intel HD4000

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-intel/+bug/1085168/+subscriptions

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