This issue was resolved for me by following this:
http://www.linwik.com/wiki/using+the+intel+arrandale+intel+graphics+media+accelerator+hd+with+ubuntu+9.10
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black screen on Intel HM55 - during boot and Xorg
https://bugs.launchpad.net/bugs/518938
You received this bug notification because you
I would like to mention that following these instructions has completely
fixed this issue for me:
http://www.linwik.com/wiki/using+the+intel+arrandale+intel+graphics+media+accelerator+hd+with+ubuntu+9.10
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[Clarkdale] entire desktop environment locks up in 9.10, i3-530 proc, built-in
graphics