Had almost the same problem after an update from gutsy to hardy, used URandR 
dualscreen setup on gutsy:

Option "MigrationHeuristic" "greedy"

AND

Option "DRI" "false" # Was set true on gutsy

Prevents from crashing with a virtual of 2960x1050

-- 
[Hardy] [regression] xorg with Intel driver crashes if Virtual > 2048
https://bugs.launchpad.net/bugs/188178
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