I've the Intel 965 adapter as well.  I've just dist-upgraded to Hardy
(stable).  I can confirm the behaviour dnquark describes.  On gutsy you
had to have DRI disabled in order to be able to rotate the screen.  On
hardy, you can enable DRI - but still require compiz to be disabled.

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It does not refresh well when dragging a window in the rotated screen (Santa 
Rosa)
https://bugs.launchpad.net/bugs/129380
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