I wish I knew. I've had some difficulty tracking it down in detail.
I did report it here, but my own kernel skills aren't good enough to do a detailed debug.
Xorg just gives up, with:
(EE) intel(0): failed to set mode: Invalid argument
It's an i7 CPU, in an ASUS P8Z68-V LX motherboard, with 2x 1600x1200 monitors attached.
For now, I have it working by using the kernel 3.6.5 package from Mageia 2.
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