intel video driver not working on Dell inspirion 1525

Binary package hint: xserver-xorg-video-intel

Dell Inspirion 1525n with onboard Intel 965GM controller. Kubuntu Hardy Heron Beta updated as of Thursday evening 10th April.
apt-cache policy xserver-xorg-video-intel
xserver-xorg-video-intel:
  Installed: 2:2.2.1-1ubuntu12
  Candidate: 2:2.2.1-1ubuntu12
  Version table:
 *** 2:2.2.1-1ubuntu12 0
        500 http://archive.ubuntu.com hardy/main Packages
        100 /var/lib/dpkg/status

The default driver is 'vesa generic'. I tried forcing the use of the intel driver (xserver-xorg-video-intel) but X wouldn't start after restarting x server. I had to 'sudo dpkg-reconfigure -phigh xserver-xorg' to get X back again (it defaulted to the 'vesa generic' again).