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[BJB <874694@xxxxxxxxxxxxxxxxxx>]

I had similar issue on Ubuntu 11.10 on old Amilo L6820, adding
i915.modeset=0 as linux kernel param at the grub did the trick.

Please note that I did not have investigated any sideeffect of this
parameter (performance drop, etc), but at least I can run ubuntu 11.10.

Without this parameter, this issue is blocking the use of 11.10 on
affected laptop (think big icons on 640x480 !).

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https://bugs.launchpad.net/bugs/874694

Title:
  Resolution cannot be set higher than 640x480 and doesn't fit screen

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