Ok, after finding one of the dupes that was having this issue on the
same machine I'm using where I couldn't reproduce it I looked into it a
bit more. It looks like having vga16fb loaded (which I had blacklisted)
is what's causing the problem and I can reproduce it on a livecd.

** Changed in: xserver-xorg-video-intel (Ubuntu)
       Status: Incomplete => Confirmed

-- 
lshw garbles display
https://bugs.launchpad.net/bugs/528974
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