Comment 38 for bug 505271

I tested the upstream patch, in a kernel package compiled by Chase Douglas [1], which you can find in this bug report [2].
It seems to work but does not fix the gnome-settings-daemon notification: "could not switch the monitor configuration / could not set the configuration for CRTC 64", which is present only when using KMS, also without the kernel patch applied.
He decided to wait for the patch to hit the upstream git repo before applying it to lucid.
I also reported it upstream, but I have not received any answers yet.
Anyway this might be a gnome-settings-daemon related problem, since it has some other issues triggered after opening the laptop lid, that I reported in this bug [3]

[1] http://people.canonical.com/~cndougla/488328/linux-image-2.6.32-13-generic_2.6.32-13.19~lp488328_amd64.deb
[2] https://bugs.launchpad.net/ubuntu/+source/linux/+bug/488328
[3] https://bugs.launchpad.net/gnome-settings-daemon/+bug/524830