Closing as per Martin's last comment that this is resolved in Intrepid.

@felix, I suspect your problem is an unrelated bug, so if you're still
seeing it with Karmic please file a new bug using 'ubuntu-bug xorg'.

** Changed in: xserver-xorg-video-intel (Ubuntu)
       Status: Confirmed => Fix Released

-- 
[i965] Garbled output on external screen after login (Intel GM965; incl. work 
around)
https://bugs.launchpad.net/bugs/258202
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