I have had the same problem. After a few clean installs I worked out the
problem. It isn't the kernel but the display driver. When you first
install ubuntu you need lock the version of the xserver display driver.
If you install the updates a new driver version will be installed which
makes the screen go haywire.

Instructions (DO THIS BEFORE INSTALLING ANY UPDATES):
1. Go into Synaptic Package Manager
2. Search for: xserver-xorg-video-intel
3. Click Package --> Lock Version

You can now install any other updates.

-- 
display corruption after kernel update
https://bugs.launchpad.net/bugs/323264
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