i can confirm this is still present too

karmic with latest updates:
xorg                                       1:7.4+3ubuntu5            
xorg-docs-core                             1:1.4-5                
xserver-xorg                               1:7.4+3ubuntu5  
xserver-xorg-core                          2:1.6.4-2ubuntu3 
xserver-xorg-video-intel                   2:2.9.0-1ubuntu2 (using a gma965)

-- 
Screen randomly goes off in karmic
https://bugs.launchpad.net/bugs/397839
You received this bug notification because you are a member of Ubuntu-X,
which is the registrant for xserver-xorg-driver-ati.

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