I was able to work around this, this might provide some clues.
I installed ubuntu-12.04-beta1-desktop-amd64.iso to a USB drive with 
unetbootin. At unetbootin boot time, I changed the boot parameters to add 
"vga=789", this had it display in 800x600x24 mode. With this I installed 12.04 
Beta alongside the Windows 7 Starter.
When I boot the machine I get the purple Grub 1.99 menu with Ubuntu and 
Windows. I select Ubuntu.
For 2 minutes and 20 seconds I get a blank purple screen, then 10 seconds of a 
blank black screen, then the Unity desktop comes up in 1024x600 resolution, the 
resolution of the screen, and the machine is in Unity 2D mode.
The brightness control doesn't work.
I have it set to have the screen turn off after 10 minutes of inactivity, that 
is not working, I have a black screen but it is still on.

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https://bugs.launchpad.net/bugs/934956

Title:
   [REGRESSION] Xorg Intel GMA 3600 driver does not work (Atom N2600
  onboard graphics)

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