Got an update. I tried a fine tune on my xorg.conf (attached).
Adding the statement:
 Option "DRI" "False"
into the "Device" section fixes the corruption of virtual consoles, so now the 
text appears perfect. This works with any kernel I tried: 2.6.34rc7, 2.6.34 
(final), 2.6.33-4, 2.6.32-22 (bundled with lucid lynx) whilst still enabling tv 
out using `mplayer -vo dfbmga clip.avi' brings to desktop corruption and still 
gdm can't run at 1280x1024.

As a side note, disabling DRI slows down 3D performances, so now
glxgears running at full screen reports 76 fps (enabling DRI I get 190
fps).

** Attachment added: "My xorg.conf"
   http://launchpadlibrarian.net/48832786/xorg.conf

-- 
matroxfb causes corruption in both virtual consoles and xorg
https://bugs.launchpad.net/bugs/581466
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