Comment 26 for bug 417599

Wait -- that's incomplete. Originally I deleted all the non-Intel sections, and that worked. Looking for a solution easier for others to follow, I tried just removing the quirks lines, and thought it worked, but it didn't.

My solution, in short:

1. In /boot/grub/menu.lst
add i915.modeset=0 nomodeset to the defoptions line. This disables the new kernel mode-setting (KMS):
# defoptions=quiet splash i915.modeset=0 nomodeset

1b) Save and run update-grub.

2. In /usr/lib/pm-utils/sleep.d/98smart-kernel-video
delete all references to quirk options your machine needs to suspend.
In my case, three quirks are in the section have_smart_intel:
     --quirk-dpms-on --quirk-vbe-post --quirk-vbestate-restore
and two are in the section remove_all_video_quirks:
     --quirk-s3-bios --quirk-s3-mode

3) Save and reboot.