I am having the exact same issue with an IBM z60t running Dapper. If the
lid is closed and the power setting is on "do nothing" or "blank screen"
when the lid is closed and reopened the screen blinks my normal looking
desktop and then goes black and comes back completely a mess. the cursor
looks completely normal but everything behind it looks like sort of
vertical stripes and "paper shredded" images of my desktop.

let me know if you have any further questions. thanks.

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Screen is garbled after lid close & open on Thinkpad Z60m
https://launchpad.net/bugs/57147

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