well I retried to install ubuntu 10.04.1 (hoping the intel issues were
solve - my mistake) and updated the following:

$ sudo add-apt-repository ppa:glasen/intel-driver 
$ sudo apt-get update && sudo apt-get upgrade

$ sudo add-apt-repository ppa:glasen/855gm-fix
$ sudo apt-get update && sudo apt-get install dkms 855gm-fix-dkms

as described in https://wiki.ubuntu.com/X/Bugs/Lucidi8xxFreezes

the problem persist and I am back in Ubuntu 8.04...

-- 
[i855gm] Lid close with intel 82852/855GM provokes black screen, loss of 
control and overheat
https://bugs.launchpad.net/bugs/462939
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