Sorry, I've missed the beginning of the thread,
Have you tried proprietary drivers like:

http://downloadcenter.intel.com/Product_Filter.aspx?ProductID=1044

I used Intel's proprietary driver for my previous laptop.
My current laptop has ATI x1600 and I'm using

http://ati.amd.com/support/drivers/linux64/radeonprevious-linux64.html

There's a link to wiki somewhere on the ati web site -- I wrote quick 
instruction on how to build rpm for sl 5.0

Cheers
>>
>>>>  I have an IBM Thinkcentre with this graphics card:
>>>>  00:02.0 VGA compatible controller: Intel Corporation 82865G 
>>>> Integrated
>>>>  Graphics Controller (rev 02)
>>>>
>>>>  as compared with HP's choice
>>>>  [root@bobtail ~]# lspci -s 00:02.0
>>>>  00:02.0 VGA compatible controller: Intel Corporation 82Q963/Q965
>>>>  Integrated Graphics Controller (rev 02)
>>>>  [root@bobtail ~]#


http://downloadcenter.intel.com/Product_Filter.aspx?ProductID=1044