I have a Dell 700m which uses the Intel 855GM video chipset, and have
the same problem. I installed Ubuntu Netbook Remix on it using the
i915.modeset=1 kernel parameter from the grub menu when booting the Live
CD. I then appended the same parameter to the GRUB_CMDLINE_LINUX_DEFAULT
value in /etc/default/grub, ran update-grub, and am now able to boot
into the OS successfully.

However, the netbook launcher is painfully slow. I am guessing that this
is due to 3D acceleration not working correctly (2D apps perform as
expected), and am hoping that this will be resolved in an update ASAP.

-- 
[kms-blacklisted][855] Black screen on boot without
https://bugs.launchpad.net/bugs/566133
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which is subscribed to xserver-xorg-video-intel in ubuntu.

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