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35a32c5
(Get the code!)
I'm also experiencing this problem after applying today's updates. TTYs work fine, but GDM displays a black-and-white garbled screen. If I go to a tty and run a ps -e, I can see some failsafeXinit processes, so I guess it's using the vesa driver, which seems to be broken.
My card, as reported by vista, is a "Mobile Intel 4 Series Express Chipset Family". If you need any other information, just ask.