I can't confirm the bug, but the GM965 (GMA X3100) has a similar problem
on Feisty, and probably any distro with pre 2.1.0 Intel graphics
drivers. The problem is that although the resolution is correct, a
scaling filter is still being applied, causing everything to become
slightly blurred. I haven't seen the problem with Tribe 3 on my laptop.
Maybe the drivers on the live CD are older.

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G965 display blurry
https://bugs.launchpad.net/bugs/128995
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