Confirmed on a Gateway Solo 2550 (8.04.1 Server)

Francisco L. Fernandez: You can get rid of the mouse "artifacts" by
adding:

Option "HWCursor" "off"

to the Device section of your xorg.conf.

Adding fbcon and vga16fb to /etc/modules fixed the issue of a blank
screen once leaving X.

-- 
Screen blanks and freezes after a few minutes of idling, possibly due to broken 
DPMS
https://bugs.launchpad.net/bugs/136853
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