I remember fixing this issue at least a month ago...

I did a fresh install on my core i3 330M today and updated the system. I 
plugged in an external monitor (max res 1280x1024). I cannot reproduce the 
issue as reported here.
I am using a Ubuntu downloaded from the daily repository on the 14 of august...

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https://bugs.launchpad.net/bugs/830952

Title:
  [Intel Arrandale,Mobile 4 Series] Video corrupted when connecting
  external displays

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