2.6.35-20 blacklists KMS on the problematic cards. X is then supposed to fall back to vesa. If it doesn't, a bug should be filed for that. If falling back to vesa has enough problems of its own, that decision might be reversed.
i915.modeset=1 will override the blacklist, so you can always turn KMS back on with the new kernel. Also, my own graphics-fixes kernel undoes the blacklist.
2.6.35-20 blacklists KMS on the problematic cards. X is then supposed to fall back to vesa. If it doesn't, a bug should be filed for that. If falling back to vesa has enough problems of its own, that decision might be reversed.
i915.modeset=1 will override the blacklist, so you can always turn KMS back on with the new kernel. Also, my own graphics-fixes kernel undoes the blacklist.