Comment 17 for bug 629711

Hm.

Ok. So, that log shows you booting with just the laptop's internal panel, plugging in a second display to the VGA port, which comes up in an extended desktop situation, then disabling the VGA output, presumably through the Monitors capplet or equivalent, and then letting the timeout expire to get back to the extended desktop.

Once it's back on the extended desktop the display returns to normal?

Given that the mouse pointer continues working properly I'd guess the problem is somewhere in the framebuffer settings for that particular mode change.