I have the same problem on a ThinkPad T60p.

When connecting an extrenal monitor, the image is displayed, but very
wobbly and therefore unusable.

Only when I set the 640x480 resolution on the external monitor, the
screen seems to stabalize.

Video hardware is: Ati FireGL V5250, So it might be a more general
(software) problem.

-- 
External display not working
https://bugs.launchpad.net/bugs/533269
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