Have you had a chance to test this on lucid?  Unfortunately I do not
have specific info that it's fixed, however I did pull in several i8xx
fixes from upstream, so am hopeful.

I'd suggest booting your kernel with i915.modeset=0 because it's been
found that this chip doesn't work well with KMS (lp #542208).  We'll be
blacklisting kms for that chip to resolve that bug, but I'm curious
about whether your issue will be remaining.

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

-- 
[i830] when memory runs low, xorg locks up and does not unlock when memory 
conditions improve
https://bugs.launchpad.net/bugs/479641
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