I have a laptop HP 2540p and I'm in the same situation.
The kernel family 2.6.32.* doesn't work, also with other linux distributions.
Kernel 2.6.31-21 works without such problems (I installed ubuntu 9.10 and after 
it I completed the dist-upgrade to 10.04).
Actually I boot lucid lynx using 2.6.31-21 (the karmic one).

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Cannot install on HP 2540p laptop
https://bugs.launchpad.net/bugs/585651
You received this bug notification because you are a member of Ubuntu-X,
which is the registrant for xf86-video-intel.

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