I experienced the same, but on an Acer Aspire One 110L (i945GME) and I'm pretty sure I reported it, but now I can't find the bug report ... Anyhow, this last update (kernel and xserver-xorg-video-intel) fixed this issue for me.
-- Allows only 800x600 resolution on IBM Thinkpad X40 https://bugs.launchpad.net/bugs/454557 You received this bug notification because you are a member of Ubuntu-X, which is subscribed to xserver-xorg-video-intel in ubuntu. _______________________________________________ Mailing list: https://launchpad.net/~ubuntu-x-swat Post to : ubuntu-x-swat@lists.launchpad.net Unsubscribe : https://launchpad.net/~ubuntu-x-swat More help : https://help.launchpad.net/ListHelp