Update 4: Wow, this netbook sucks, mainly due to the intel graphics. (I've also had a miserable time with my other intel netbooks). The driver broke again, so I've been using it with the painfully slow vesa driver, which at least makes it stable.
Update 3: The netbook-launcher process is horribly slow when using non-accelerated graphics. If you just want to fix that without bothering with the accelerated graphics hack, just disable the netbook launcher.
Update 2: A magic incantation in xorg.conf fixes the lockups:
Option "AccelMethod" "EXA"
Option "DRI" "off"
Option "MigrationHeuristic" "greedy"
Update: I'm getting frequent system freezes. I suspect it's the video driver, so I'm going to downgrade back to the VESA driver and see if it improves.
After the install, I only got 800x576 video in xorg, using the non-accelerated VESA driver.
Based on these instructions, I added the Poulsbo graphics drivers:
Edit /etc/apt/sources.list (for example, by running "sudo gedit /etc/apt/sources.list") and add these two lines to the file:
deb http://ppa.launchpad.net/ubuntu-mobile/ppa/ubuntu jaunty main
deb-src http://ppa.launchpad.net/ubuntu-mobile/ppa/ubuntu jaunty main
sudo apt-key adv --keyserver keyserver.ubuntu.com --recv-keys C6598A30
sudo apt-get update
sudo apt-get install xserver-xorg-video-psb
sudo apt-get install poulsbo-driver-2d poulsbo-driver-3d
Rebooting, I got errors about "First SDVO output reported failure to sync or input is not trainded!!!" and "This driver currently needs DRM to operate." This bug report suggests that it has to do with the kernel version. The suggested fix worked:
apt-get install psb-kernel-source