This is a follow-up post in a sense, to the one about getting Lucid to work on an old Dell X300. With the tip provided in the Wiki about re-enabling KMS, I was able to get it running. However I quickly ran into another problem: the Movie Player (Totem 2.30.2) bombed out when attempting any AVI file. It's a complete crash, killing X as well as the whole display - I couldn't even get to any console. Naturally it felt like still the Intel 8xx issue. So, maybe it's time to come clean.
I read the Wiki again, and it looks like the more complete fix would be either upgrading the Intel driver, or just upgrading the back-ported kernel 3.0. So I tried the less dramatic one - upgrading the Intel driver. It's a simple straightforward install (you gotta love Apt!). Once that's in and rebooted, I saw some improvement, but not enough. Totem still crashed, but hurting no one else but itself.
Only one thing left to try: the 3.0 kernel. Another painless apt-get - how could replacing the heart of the OS this easy? Anyway, once rebooted, all looked well! Three cheers to the Wiki people.