Looks like this is a driver bug. The release of Feb-23-2012 fixed many
related issues. Looks like the driver was built on linux 3.2.x version.

Probably just a matter of packaging with the proper driver version.
Meanwhile Linux 3.2.9 seems to have been released on released on
2012-03-02. I couldn't find which version of driver they are shipping
with due to my limited knowledge about c programming.

http://intellinuxgraphics.org/2012.02.html

Thanks

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https://bugs.launchpad.net/bugs/912397

Title:
  Intel HD Graphics "No Device Detected"

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