I have determined that there is are errors in the i915 driver. I am not
sure if it is related to the font degrading issue. Here are the two
Kernel logs for each one. Note in the logs ERROR on i915.

Option 4 and 5 in Kernel 2.6.27.11 and an additional on in 2.6.26.11
option 6.

I hope this helps and I hope someone is reading these.

** Attachment added: "Kernal-2.6.27-11-generic.txt"
   http://launchpadlibrarian.net/26219487/Kernal-2.6.27-11-generic.txt

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Fonts corrupted on Thinkpad X30 
https://bugs.launchpad.net/bugs/368877
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