The driver is not working in Gutsy. I'm running the RC live CD right now. The 
symptoms are the same as reported above. I have a G40 ThinkPad with the 
82852/855GM chip.
When booting the CD, the screen goes black when starting X. I can't even switch 
to the console with Alt+F1.
Starting up in safe graphics mode works.
Using the "test" button in the "Screens and Graphics" utility to try the 
"intel" driver results in a blank screen and a "Configuration test failed" 
message. I attached the log produced by the test server.
The "i810" driver passes the test.

** Attachment added: "xorg test server log"
   http://launchpadlibrarian.net/10004515/Xorg.9.log

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xserver-xorg-video-intel does not work with 82852/855GM
https://bugs.launchpad.net/bugs/108056
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