sudo apt-get install psb-kernel-source
sudo shutdown -r now

This fixed it for me.

@jamie:
Maybe try removing it first or doing a reinstall...?

@hardyrulz:
"2.6.28-14 kicks ass" - What have you noticed that makes this better than 13? 
Do you mind explaining what installing the source from apt-get did? I've never 
done this before and am not familiar with source files in apt/synaptic".

Does anyone know if this kernel update helps with the lock-ups associated with 
the 3d driver in bug#393290?
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-psb/+bug/393290

-- 
2.6.28-14 kills PSB driver on Dell Mini 10 & Acer  One 751h
https://bugs.launchpad.net/bugs/406651
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which is subscribed to xserver-xorg-video-psb in ubuntu.

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