I can confirm the same on an Intel 855GM card. After implementing fixes from 
this bug (where you'll see my other comments) and disabling xrandr in 
gconf-editor I am able to use the intel driver, at the correct resolution and 
DPI without xrandr crashing.
(https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-intel/+bug/151311)

On the other hand, this may be a bug with the actual intel driver, it
feels slower than th i810 driver. It seems like its taking much longer
to redraw/rerender windows...

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gnome-settings-daemon crashed with SIGSEGV
https://bugs.launchpad.net/bugs/197153
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