I read this when I asked about this issue today.

"One caveat. You need to disable KMS or else XVideo output will not
initialize properly."

I have Intel G33 on-board graphics, this is a very common graphics card,
thousands of people use these. This bug needs to be resolved, not worked
around like in Jaunty. No other major distribution is suffering with
this issue, so it is fair to say there is a permanent solution for this
bug. There were enough issues with Intel graphics in Jaunty. Can we
please make this bug a priority in Karmic?

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agpgart-intel not loaded before drm sometimes, causes KMS to fail
https://bugs.launchpad.net/bugs/430694
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