"The only test of the utility of Knowledge, is its promoting the happiness of mankind." — Dr. STARK on Diet, p. 90.
Went through hell for the past day with my new Vostro 200 at work. There were various STOP codes 0x0000000a, STOP 0x0000001a, STOP 0x0000008e, including the infamous IRQL_NOT_LESS_OR_EQUAL message. The system showed the instability at the higher resolutions - at 1400x900 it was well nigh unusable.
The upshot is that the Dell website still has the old driver- you need to go to Intel and get the updated driver from this page. As an added incentive, this revision also fixes the crappy looking rasterization you got with the old driver. So it not only works well, it looks good too.