I had the same issue with my Acer TravelMate 290
Running Fedora FC4. Up2date gave me the latest Xorg update, and it fried my GUI. Tried loading two separate old kernels, but still no luck. When I booted into runlevel 3, I sniffed around, but nothing looked suspicious. I went as far as to look at the Xorg.conf file, but didn't think the "i810" value was the issue. I still don't, for reasons enumerated below.
Since I had all my data backed up, and had spent about three hours trying to force an oldpackage reinstall of the Xorg RPMs with no luck, I decided to cut my losses and reinstall the OS from the CDs. (That, plus reinstalling all my non-bundled apps, took the better part of a weekend.) Then I ran up2date and told it NOT to update any Xorg* RPMs. So far all is well.
The reason I don't think the problem is the video driver specified in /etc/X11/xorg.conf is that it NOW reads "i810." Also, I had an old version of xorg.conf that I had saved before this screw-up, but substituting that one did not bring back the GUI.
I'm obviously a little afraid to download the new Xorg RPMs again, but I don't like having RPMs that are out of date either. Can anyone offer me a viable and relatively risk-free workaround? (Or at least a way of TESTING the new Xorg packages that will allow me to roll back easily if things run amuck?)