This article appears too late i suppose in this site. Many know about it already. Just in case, i am posting it.

So if your xserser-xorg-video-intel is not that satisfactory to you, or if it doesn’t give the right screen resolution, just use this. If available in repos use it, if not use this link. You will have to remove xserver-xorg-video-intel either manually or through package manager. Then after installation restart Xserver (Ctrl+Alt+Backspace; Enable it thus in Karmic)

That should bring the resolution right or at least make it better.

Thanks to these articles and in case of problems please follow the links:

The PAINLESS way to set Screen Resolution for Intel Chipsets

Can’t change resolution with 915resolution

Finally got desktop effects working (915resolution + xorg.conf)

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