I'm also hitting this bug with yesterday's daily Karmic build on following 
hardware:
Motherboard: DG45ID with intel X4500HD [G45]

I've booted the system with this live CD three times and every time the results 
have been different:
1st boot: KMS did work and Compiz started but Xorg was taking 100% CPU time and 
everything was running extremely slowly - like everything were software 
rendered. I guessed at that time that the daily build had a broken intel driver 
and did not investigate further. The performance was too slow to be usable.

2nd boot: KMS did fail and I saw the *ERROR* messages above in the dmesg
output. Compiz would not start. Terminal (VT1) did not work because the
screen mode was incorrectly set.

3rd boot: KMS did work and Compiz started. Everything seems to work just fine. 
However, I'm seeing this in the dmesg output:
$ dmesg | grep drm
[    6.636985] [drm] Initialized drm 1.1.0 20060810
[    6.785857] [drm] MTRR allocation failed.  Graphics performance may suffer.
[    6.791386] [drm] i2c_init DPDDC-B
[    6.802092] [drm] i2c_init DPDDC-C
[    7.073565] [drm] fb0: inteldrmfb frame buffer device
[    7.073696] [drm] Initialized i915 1.6.0 20080730 for 0000:00:02.0 on minor 0
[    7.139640] [drm] DAC-6: set mode 1280x1024 21

-- 
agpgart-intel not loaded before drm sometimes, causes KMS to fail
https://bugs.launchpad.net/bugs/430694
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