Comment 3 for bug 200965

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unggnu (unggnu) wrote : Re: Intel driver does not allow all resultions (and conflicts with 915resolution)

Just add the follow line to your xorg.conf device section:

Virtual 2960 1050

The problem is that the Intel driver doesn't support DRI (hardware acceleration) with Virtual sizes over 2048 (Bug #146859). This is an hardware limitation for older Intel hardware but afaik not for newer (at least i965). With this option it should be possible to use the external monitor with native resolution left or right of your LFP but afaik only without DRI. Since Hardy you have a gui for xrandr - Screen resolution.
Below or above would work with DRI but it isn't so comfortable :-D . I personally disable my LFP every time the external monitor is connected.
If X doesn't start after adding the option you possibly experience bug #188178 which could be fixed through adding another line mentioned in the report.