Again, you need to test against _karmic_ - it seems you used the 8.10
according to the Xorg.0.log you posted.
** Changed in: xserver-xorg-video-intel (Ubuntu)
Importance: Undecided => High
** Changed in: xserver-xorg-video-intel (Ubuntu)
Status: Confirmed => Incomplete
** Summary changed:
- [i845] Ubuntu 8.10, 9.04, and 9.10 Alpha2 does not install
+ [i845] Ubuntu 8.10 does not install - "OUT OF RANGE"
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[i845] Ubuntu 8.10 does not install - "OUT OF RANGE"
https://bugs.launchpad.net/bugs/399070
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