Ivy Bridge graphics not working (core i5 HD 2500)

To solve this problem:

1) Do a fresh install of Ubuntu 12.04, boot installer with the nomodeset option so you don't get a black screen during the install.

2) On first boot add nomodeset to the GRUB boot line, so you don't get a black screen while running for the first time.

3) Log in, open a terminal (ctrl-alt-T), and add Timo Aaltonen's patched hybrid xorg:

sudo add-apt-repository ppa:tjaalton/ppa
sudo apt-get update 
sudo apt-get dist-upgrade 

4) reboot. You shouldn't need nomodeset anymore.

Now it's working at 1080p. Now I have a problem with my terrible TV doing overscan on HDMI, but I'm happy with that for now.