It looks like LVDS is getting enabled even when it's disabled in the BIOS.
https://wiki.ubuntu.com/X/Quirks#Ignore%20LVDS%20Output%20Quirk
Solution:
http://forum.eeeuser.com/viewtopic.php?id=39698
This should work for most Intel 945XX users:
gksudo edit /etc/X11/xorg.conf
Section "Device"
 Identifier "Configured Video Device"
 Driver  "intel"
 Option   "monitor-LVDS" "LVDS" 
EndSection
Section "Monitor"
 Identifier "Configured Monitor"
EndSection
Section "Monitor"
 Identifier  "LVDS"
       Option   "Ignore" "True" 
EndSection 
Section "Screen"
 Identifier "Default Screen"
 Monitor  "Configured Monitor"
 Device  "Configured Video Device"
EndSection
.