kernel BUG at /build/buildd/linux-2.6.32/drivers/gpu/drm/i915/intel_display.c:1917!

seems like older generation integrated intel cpu/graphic (i915) isn't supported well. No video playback possible with vlc or movieplayer. rhythmbox for mp3 works fine.
Problems started after opening "multimedia systems selector" - even with all default settings "test" option didn't provide any feedback. afterwards any kind of video results in serious errors / kernel panic and no way to return to gui or commandline

ProblemType: KernelOops
DistroRelease: Ubuntu 10.04
Package: linux-image-2.6.32-19-generic 2.6.32-19.28
Regression: Yes
Reproducible: Yes
ProcVersionSignature: Ubuntu 2.6.32-19.28-generic 2.6.32.10+drm33.1
Uname: Linux 2.6.32-19-generic i686
AlsaVersion: Advanced Linux Sound Architecture Driver Version 1.0.21.
Annotation: Your system might become unstable now and might need to be restarted.
Architecture: i386
AudioDevicesInUse:
 USER PID ACCESS COMMAND
 /dev/snd/controlC0: rashid 1353 F.... pulseaudio
CRDA: Error: [Errno 2] No such file or directory
Card0.Amixer.info:
 Card hw:0 'I82801DBICH4'/'Intel 82801DB-ICH4 with Cx20468-31 at irq 11'
   Mixer name : 'Conexant Cx20468-31'
   Components : 'AC97a:43585430'
   Controls : 23
   Simple ctrls : 16
Date: Sun Apr 4 19:05:34 2010
Failure: oops
HibernationDevice: RESUME=UUID=e93d1a0e-f44f-41b5-96dd-5f72165c5c96
Lsusb:
 Bus 003 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
 Bus 002 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
 Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
MachineType: TOSHIBA Satellite PRO L10
PccardctlIdent:
 Socket 0:
   no product info available
PccardctlStatus:
 Socket 0:
   no card
ProcCmdLine: BOOT_IMAGE=/boot/vmlinuz-2.6.32-19-generic root=UUID=b5f3a1a9-2560-4ad1-8522-52f123de1938 ro quiet splash
RelatedPackageVersions: linux-firmware 1.33
RfKill:

SourcePackage: linux
Title: kernel BUG at /build/buildd/linux-2.6.32/drivers/gpu/drm/i915/intel_display.c:1917!
WpaSupplicantLog:

dmi.bios.date: 12/25/2008
dmi.bios.vendor: TOSHIBA
dmi.bios.version: V3.00
dmi.board.name: Satellite PRO L10
dmi.board.vendor: TOSHIBA
dmi.board.version: Rev 1.0
dmi.chassis.asset.tag: PSL15E-00N02FDU
dmi.chassis.type: 10
dmi.chassis.vendor: TOSHIBA
dmi.chassis.version: Rev.1
dmi.modalias: dmi:bvnTOSHIBA:bvrV3.00:bd12/25/2008:svnTOSHIBA:pnSatellitePROL10:pvrPSL15E-00N02FDU:rvnTOSHIBA:rnSatellitePROL10:rvrRev1.0:cvnTOSHIBA:ct10:cvrRev.1:
dmi.product.name: Satellite PRO L10
dmi.product.version: PSL15E-00N02FDU
dmi.sys.vendor: TOSHIBA