Comment 23 for bug 220019

This issue should be fixed in Intrepid with Intel driver 2.3.1. For Hardy there is an unofficial package http://people.ubuntu.com/~bryce/Testing/intel/hardy-i386/xserver-xorg-video-intel_2.3.1-1ubuntu1~bwh3_i386.deb (AMD64 http://people.ubuntu.com/~bryce/Testing/intel/hardy-amd64/xserver-xorg-video-intel_2.3.1-1ubuntu1~bwh3_amd64.deb) but I guess that it doesn't make it a and SRU (https://wiki.ubuntu.com/StableReleaseUpdates).

If you want to try the new -intel driver for Hardy you have to remove the old i810 driver and then install the new one.
sudo apt-get remove xserver-xorg-video-i810 xserver-xorg-video-all

If you want to reset everything do the follow commands.
sudo apt-get remove xserver-xorg-video-intel
sudo apt-get install xserver-xorg-video-all