Ok this should now be fixed in Karmic. The fix for this was released in
the 2.6.31-1 kernel. Closing this off Fix Released.
** Changed in: linux (Ubuntu)
Status: In Progress => Fix Released
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Kernel High Memory Support 64GB [PAE] incompatible with intel video UXA
https://bugs.launchpad.net/bugs/356381
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which is the registrant for xf86-video-intel.
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