Ok I updated the kernel to 3.8.0-030800-generic and it fixed the
crashing issue. I can now turn on both monitors with this setup. Only
problem is that I get wierd boxes/streaks when I move the mouse cursor
or move windows. I took a picture with my cell phone since print screen
won't capture it (ignore the warped lines ... that's just a side effect
of trying to take a picture of an LCD screen. But notice the gray box
near my mouse cursor).

I'm closing this bug (since the kernel crash issue IS resolved), but I
would still appreciate help.

Do I need to install a new version of X or something after upgrading the
kernel? I have never upgraded the kernel manually before (always done it
through Ubuntu software center).


** Attachment added: "IMAG0089.jpg"
   
https://bugs.launchpad.net/ubuntu/+source/linux/+bug/1130489/+attachment/3539314/+files/IMAG0089.jpg

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Title:
  Kernel Crash with AMD/Intel Graphics Combination

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