This problem is solved on my test gentoo install using the vanilla
2.6.31-rc2 kernel.

Here are some relevant links:

Gentoo bug report:

http://bugs.gentoo.org/show_bug.cgi?id=269554

Upstream bug report:

https://bugs.freedesktop.org/show_bug.cgi?id=21710

Mailing list entry linked to by upstream bug, may have patch that fixed
this?

http://lists.freedesktop.org/archives/intel-gfx/2009-June/002975.html

-- 
GDM: Can't log in with KMS enabled
https://bugs.launchpad.net/bugs/393455
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