I had exactly the same problem with my laptop with that chipset while
uprading to Intrepid. I finally solved it by changing driver name in my
xorg.conf from "i810" to "intel".

See also xorg bug report
https://bugs.freedesktop.org/show_bug.cgi?id=12886

So it seems to be an configuration issue. However, as the old drver
definition works with 8.04, I think that the upgrade should at least
show a warning about this.

-- 
no X after upgrade with intel controller
https://bugs.launchpad.net/bugs/279688
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