Graphical corruption on dock or undock on Thinkpad X40 (855GM)

On either docking or undocking my X40, the laptop display is corrupted, and cannot be recovered. External VGA continues to function, but cursor is invisible.

To reproduce:
 * Either
   * Boot in dock, then hit Fn+F9 (ACPI undock)
     OR
   * Boot undocked, then dock
 - At this point the laptop LCD is corrupted (mostly black, some white lines that seem to move with the cursor),
   and there is no signal to the external VGA (dock connector, laptop connector is inaccessible in dock).
 * Next, hit Fn+F7 (ACPI video)
 - Now the external VGA fires up, at laptop display resolution (1024x768), however the cursor is invisible, but still functional (exactly as for Bug #614176)

Bug still present in 2.6.35-23.35~pre201010220901, appeared sometime after 2.6.35-19.25~lucid1

ProblemType: Bug
DistroRelease: Ubuntu 10.10
Package: linux-image-2.6.35-22-generic 2.6.35-22.35
Regression: Yes
Reproducible: Yes
ProcVersionSignature: Ubuntu 2.6.35-23.35~pre201010220901-generic 2.6.35.7
Uname: Linux 2.6.35-23-generic i686
AlsaVersion: Advanced Linux Sound Architecture Driver Version 1.0.23.
Architecture: i386
AudioDevicesInUse:
 USER PID ACCESS COMMAND
 /dev/snd/controlC0: davec 1780 F.... pulseaudio
CRDA: Error: [Errno 2] No such file or directory
Card0.Amixer.info:
 Card hw:0 'I82801DBICH4'/'Intel 82801DB-ICH4 with AD1981B at irq 17'
   Mixer name : 'Analog Devices AD1981B'
   Components : 'AC97a:41445374'
   Controls : 28
   Simple ctrls : 20
Card29.Amixer.info:
 Card hw:29 'ThinkPadEC'/'ThinkPad Console Audio Control at EC reg 0x30, fw 1UHTB2WW-1.62'
   Mixer name : 'ThinkPad EC 1UHTB2WW-1.62'
   Components : ''
   Controls : 2
   Simple ctrls : 1
Card29.Amixer.values:
 Simple mixer control 'Console',0
   Capabilities: pvolume pvolume-joined pswitch pswitch-joined penum
   Playback channels: Mono
   Limits: Playback 0 - 14
   Mono: Playback 9 [64%] [on]
Date: Tue Nov 2 16:26:44 2010
HibernationDevice: RESUME=UUID=e17a246b-fdec-4f1e-b3ed-c31697370125
InstallationMedia: Ubuntu 9.10 "Karmic Koala" - Release i386 (20091028.5)
MachineType: IBM 2372KHM
PccardctlIdent:
 Socket 0:
   no product info available
PccardctlStatus:
 Socket 0:
   no card
ProcCmdLine: root=/dev/mapper/hostname-root ro quiet splash crashkernel=384M-2G:64M,2G-:128M
ProcEnviron:
 PATH=(custom, user)
 LANG=en_AU.utf8
 SHELL=/bin/bash
RelatedPackageVersions: linux-firmware 1.38
RfKill:
 0: phy0: Wireless LAN
  Soft blocked: no
  Hard blocked: no
SourcePackage: linux
dmi.bios.date: 12/21/2006
dmi.bios.vendor: IBM
dmi.bios.version: 1UETD3WW (2.08 )
dmi.board.name: 2372KHM
dmi.board.vendor: IBM
dmi.board.version: Not Available
dmi.chassis.asset.tag: No Asset Information
dmi.chassis.type: 10
dmi.chassis.vendor: IBM
dmi.chassis.version: Not Available
dmi.modalias: dmi:bvnIBM:bvr1UETD3WW(2.08):bd12/21/2006:svnIBM:pn2372KHM:pvrThinkPadX40:rvnIBM:rn2372KHM:rvrNotAvailable:cvnIBM:ct10:cvrNotAvailable:
dmi.product.name: 2372KHM
dmi.product.version: ThinkPad X40
dmi.sys.vendor: IBM