Using the latest kernel from the kernel ppa (2.6.39.0.1~20110419) fixed
the issue. Yay!

sudo add-apt-repository ppa:kernel-ppa/ppa
sudo apt-get install linux-generic-pae
sudo reboot

(I can't figure out how to resolve this issue, otherwise I would)

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https://bugs.launchpad.net/bugs/799609

Title:
  cannot use only external LCD monitor with laptop

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