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[ff1111 <f2rox@xxxxxxxxx>]

I have this problem as well.

9.04 x64, kernel 2.6.28-15-generic, with intel GM965 graphics
running xserver-xorg-video-intel: 2:2.9.0~git20091007.03e8e64f-0ubuntu0tormod3~jaunty

After latest update, it goes to low graphics mode on startup. says:

(EE) intel(0): No kernel modesetting driver detected.
(EE) Screen(s) found, but none have a usable configuration.

then,

 Server is already active for display 0


** Attachment added: "Xorg log file"
   http://launchpadlibrarian.net/33374157/XorgLog.txt

-- 
Video driver error: No kernel modesetting driver detected
https://bugs.launchpad.net/bugs/447181
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