This is a strange problem, besides other strange problems with the intel driver and the x3100 in the Lenovo Thinkpad T61 and 1400x900 LCD screen. Basically the screen always looks fuzzy and the driver is not setting the native resolution correctly. This mailing list post hack does work and fixes the problem (though the side effects are still unknown):

http://www.spinics.net/lists/xorg/msg25099.html

Here is some data that could help:
lspci -nn:
============
00:02.0 VGA compatible controller [0300]: Intel Corporation Mobile Integrated
Graphics Controller [
8086:2a02] (rev 0c)
00:02.1 Display controller [0380]: Intel Corporation Mobile Integrated Graphics
Controller [8086:2a
03] (rev 0c)


lspci -vv:
============
00:02.0 VGA compatible controller: Intel Corporation Mobile Integrated Graphics 
Controller (rev 0c) (prog-if 00 [VGA])
        Subsystem: Lenovo Unknown device 20b5
        Control: I/O+ Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr-
Step
ping- SERR- FastB2B-
        Status: Cap+ 66MHz- UDF- FastB2B+ ParErr- DEVSEL=fast >TAbort- <TAbort- 
<MAbort- >SERR- <PERR-
        Latency: 0
        Interrupt: pin A routed to IRQ 20
        Region 0: Memory at f8100000 (64-bit, non-prefetchable) [size=1M]
        Region 2: Memory at e0000000 (64-bit, prefetchable) [size=256M]
        Region 4: I/O ports at 1800 [size=8]
        Capabilities: [90] Message Signalled Interrupts: Mask- 64bit- Queue=0/0 
Enable-
                Address: 00000000  Data: 0000
        Capabilities: [d0] Power Management version 3
                Flags: PMEClk- DSI+ D1- D2- AuxCurrent=0mA
PME(D0-,D1-,D2-,D3hot
-,D3cold-)
                Status: D0 PME-Enable- DSel=0 DScale=0 PME-
                Bridge: PM- B3+

00:02.1 Display controller: Intel Corporation Mobile Integrated Graphics
Controller (rev 0c)
        Subsystem: Lenovo Unknown device 20b5
        Control: I/O+ Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr-
Stepping- SERR- FastB2B
-
        Status: Cap+ 66MHz- UDF- FastB2B+ ParErr- DEVSEL=fast >TAbort- <TAbort-
<MAbort- >SERR- <PE
RR-
        Latency: 0
        Region 0: Memory at f8200000 (64-bit, non-prefetchable) [size=1M]
        Capabilities: [d0] Power Management version 3
                Flags: PMEClk- DSI+ D1- D2- AuxCurrent=0mA
PME(D0-,D1-,D2-,D3hot-,D3cold-)
                Status: D0 PME-Enable- DSel=0 DScale=0 PME-
                Bridge: PM- B3+