This has been bisected down to commit 1755168, which reworked the PCI DMI API stuff for the Intel IOMMU support.
On 2.6.32 if I disable USE_PCI_DMA_API everything works again, with it enabled I get a mouse cursor but corrupted frame buffer.
This is an HP/Compaq 6710b with GM965 integrated video, on Ubuntu 9.10.
Without this fix 2.6.32 is unusable on this hardware.
(Console works, but.)
Zephaniah E. Hull.
*** This bug has been marked as a duplicate of bug 14627 ***