Comment 4 for bug 989672

Yes, able to reproduce with the 12.06 RC1 image:
hwpack: hwpack_linaro-lt-panda-x11-base_20120626-139_armhf_supported.tar.gz
image: linaro-precise-ubuntu-desktop-20120626-247.tar.gz

This is probably an issue with the omap xorg driver, as with fbdev (remove pvr-omap4 package) it works as expected.