This is pretty clearly a kernel bug. xserver-xorg-video-intel
2.9.1-1ubuntu3 through 1ubuntu10 and newer are compiled without UMS
support so it's expected to fallback to vesa if you boot with nomodeset
and is not a bug. The LVDS not getting detected properly under KMS is
the main issue here as shown in the dmesg in comment #13.
** Package changed: xserver-xorg-video-intel (Ubuntu) => linux (Ubuntu)
** Changed in: linux (Ubuntu)
Status: Confirmed => In Progress
** Changed in: linux (Ubuntu)
Assignee: (unassigned) => Robert Hooker (sarvatt)
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[i945gme] Ubuntu falls back on vesa driver (no screens)
https://bugs.launchpad.net/bugs/507196
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