I think this bug has been fixed in Gutsy with the new Intel driver. You can use
xrandr for configuring your external monitor (clone, extend, disable and so on).
The problem that the screen switch key doesn't work with xrandr is another bug
report e.g. Bug #157596.
Marking as fixed. Feel free to open it again if external Monitor still doesn't
work under Gutsy with external monitor and new Intel driver.
** Changed in: xserver-xorg-video-intel (Ubuntu)
Status: Incomplete => Fix Released
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Connecting External Monitor does not work on Thinkpad x60
https://bugs.launchpad.net/bugs/42898
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