If you want to stick with Etch.. I just found out Etch-and-a-Half (Etch 4.0r4) has the 2.6.24 kernel in it to support newer hardware such as yours.
Newly available packages
New linux-image and supporting packages have been added to take advantage of many new and updated device drivers. See the "Limitations" section of this document for more information.
A new X driver has been included to add support for the 965GM, 965GME, G33, Q35, Q33 and GM45 (PCI ids 0x2A02, 0x2A12, 0x29B2, 0x29C2, 0x29D2 and 0x2A42) devices. Some cards that were previously supported by the xserver-xorg-video-i810 driver may perform better with the xserver-xorg-video-intel driver. This includes the 945GM, 946GZ, 965G and 965Q devices.
Sorry, had I realized this a few days back it would have saved you some grief..
Check the FAQ about how to modify your sources.list of an etch installation to get the etch and a half updates.