To fix the the display you have to use the old video driver used by Jaunty and then edit the conf.list. To to this, follow the following steps:
1) Add the following lines to your /etc/apt/sources.list:
deb http://ppa.launchpad.net/siretart/ppa/ubuntu jaunty main
deb-src http://ppa.launchpad.net/siretart/ppa/ubuntu jaunty main
2) Import the appropriate GPG key:
sudo apt-key adv --recv-keys --keyserver keyserver.ubuntu.com 0xce90d8983e731f79
3) Install the driver:
sudo apt-get update
sudo apt-get install xserver-xorg-video-intel-2.4
4) Backup your xorg.conf file:
sudo cp /etc/X11/xorg.conf /etc/X11/xorg.conf-working_backup
5) Modify xorg.conf file to contain
Section "Device"
Identifier "Configured Video Device"
Option "AccelMethod" "XAA"
Option "ForceEnablePipeA" "true"
EndSection
Section "Monitor"
Identifier "Configured Monitor"
EndSection
Section "Screen"
Identifier "Default Screen"
Monitor "Configured Monitor"
Device "Configured Video Device"
EndSection
