I didn't find the time to test with karmic until today.
Good news: the reported crash no longer occurs, I can place
both displays side by side for a virtual desktop of 2304 x 800.

This doesn't really solve the problem for me since unfortunately
Xorg is prohibitively slow on this machine with karmic: redrawing
a konsole window takes several seconds with 100% CPU for Xorg.

Still I wouldn't object if this issue is closed.

-- 
[GM45] crash on intel GM45 with screen offset > 770
https://bugs.launchpad.net/bugs/401164
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