Well, I don't think that configuring X.org will do because you actually need some driver that gets the properly sized framebuffer and lets the graphics card tell that it can handle the correct resolution (which apparently VESA can't do).
I would rely on this article for my statements:
AdamW on Linux and more » Blog Archive » Intel GMA 500 (Poulsbo) graphics on Linux: a precise and comprehensive summary as to why you’re screwed
I don't know how much they can be trusted, but at least it shows that this driver avenue is not so much viable so far.
However, there is this repository of Alexander Graf which has some stuff that should work. (referred to by
poulsbo « Tuxbox Blog ) It does not work for me, though. I would guess it has to do both with kernel version and X.org version (or whatever, I know nothing about X.org). Still, apparently it does not work for more recent versions of the kernel anyway, not even for building the src.rpm (do not see this as utter negative evidence, but I have tried to and failed).
deano_ferrari, I have tried the live 11.2 M7, but pretty much the same thing. I guess the older the xorg (up to some old version), the more likely is what we have so far on this poulsbo to work. By the way, 11.2 looks beautiful with KDE 4. I did not try installing the psb stuff there, but I have to figure out how to do this on the live USB, because I need to install the module and then reboot, so some persistence is needed (both from me and the disk

), and right now I cannot afford to lose too much time with installing another version of an OS =/
If someone is hardcore enough to write the driver, I may help, though my time is restricted... I mean, getting my hands dirty with some kernel stuff isn't my style of programming, but if an extra hand is needed to tame this poulsbo monster, let me know... My visual perception is really being affected by seeing sheared stuff 8 hours a day and I cannot move back to Ubuntu because I hate it...