Comment 2 for bug 633593

As the OP I have ran into the same issue with the upgrade to kernel 2.6.35-20.
I have added, for now, i915.modeset=1 to the boot options in /etc/default/grub which gives me no crashes or black screens on boot up.

I will attach the Xorg.0.log from when I encountered the issue.

Additionally:
$ lspci | grep -i vga
00:02.0 VGA compatible controller: Intel Corporation 82845G/GL[Brookdale-G]/GE Chipset Integrated Graphics Device (rev 01)
plus (partial):
$ aptitude show xserver-xorg-video-intel
Package: xserver-xorg-video-intel
State: installed
Automatically installed: no
Version: 2:2.12.0-1ubuntu3

If more information is required, please let me know.