updated to new version. still same problem.
start laptop, login, attach external monitor, open configure display, hangs
attached xorg.log output after attaching monitor and opening configure displays

this was with 
Linux atom 2.6.31-8-generic #28-Ubuntu SMP Thu Aug 27 14:43:30 UTC 2009 i686 
GNU/Linux

xserver-xorg-video-intel
Version: 2:2.8.1-1ubuntu1

after 120 seconds i also get a backtrace in dmesg again
[ 5160.748389] INFO: task i915/0:834 blocked for more than 120 seconds...

** Attachment added: "xorg.log"
   http://launchpadlibrarian.net/30943604/xorg.log

-- 
attaching external monitor: laptop display shows corrupted desktop
https://bugs.launchpad.net/bugs/419328
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