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[dentaku65 <dentaku65@xxxxxxxxx>]

I can confirm this issue with Karmic Alpha 4
VGA compatible controller: Intel Corporation 82852/855GM Integrated Graphics Device (rev 02) 
My workaround is to use "nomodeset" at grub boot in order to do not use KMS

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[i855] No Xv support for 82852/855GM (KMS bug)
https://bugs.launchpad.net/bugs/395932
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