There's also a patch in
https://bugs.freedesktop.org/attachment.cgi?id=12993 which should solve the
problem even without the above config line. It would be nice to test it
since I don't remember anybody else having this problem on an i865 board.
If you need help to rebuild the driver with this patch, see
http://bgoglin.livejournal.com/10936.html and feel free to ask.
(xf86-video-intel commit 96246c27cb836bae8ee02c46c68a1f2102efd14b)
This worked great! The kdm full-page graphic (root window) looks fine,
the text is legible. After logging in, all the text in the KDE desktop
(menus, panel, in konsole, window title, everywhere) looks great, all the
icons are crisp and clear. Alt-F1 brings me a console that I can log in
on and the monitor does not immediately go to power-save mode.