No agreed its not an Intel Graphics Driver issue. Evidenced by the re-install 
of the drivers. The issue has been fixed now. Ubuntu released updates which I 
installed on 4/3/13 which resolved the issue. I do not have a full list of the 
updates to hand but I remember they included:
libgl1-mesa-*
version.xserver-xorg-video-nouveau

The updates definitely resolved the issue. I reconfigured grub
immediately after the install to remove nomodeset and following a reboot
could successfully login and run Unity 3D.

At the moment I cannot figure out how to display the output in the bug
report which details the software versions installed (without going
through the process of raising another bug report). Otherwise I would be
happy to compare the versions of the below and compare what has been
upgraded:

version.compiz: compiz 1:0.9.7.12-0ubuntu1
version.ia32-libs: ia32-libs N/A
version.libdrm2: libdrm2 2.4.39-0ubuntu0.1
version.libgl1-mesa-dri: libgl1-mesa-dri 8.0.4-0ubuntu0.3
version.libgl1-mesa-dri-experimental: libgl1-mesa-dri-experimental N/A
version.libgl1-mesa-glx: libgl1-mesa-glx 8.0.4-0ubuntu0.3
version.xserver-xorg-core: xserver-xorg-core 2:1.11.4-0ubuntu10.11
version.xserver-xorg-input-evdev: xserver-xorg-input-evdev 1:2.7.0-0ubuntu1.2
version.xserver-xorg-video-ati: xserver-xorg-video-ati 
1:6.14.99~git20111219.aacbd629-0ubuntu2
version.xserver-xorg-video-intel: xserver-xorg-video-intel 2:2.17.0-1ubuntu4.3
version.xserver-xorg-video-nouveau: xserver-xorg-video-nouveau 
1:0.0.16+git20111201+b5534a1-1build2

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-intel in Ubuntu.
https://bugs.launchpad.net/bugs/1144054

Title:
  Black Screen & Mouse Frozen on boot due to issue with Graphics

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-intel/+bug/1144054/+subscriptions

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