i have the problem with 640x480 4bit on Mobile Intel 945 and 965 Graphics chipset family adapters.
is being installed correctly with no error messages during installation. but after the first reboot (or after other
device drivers installation and reboot, sometimes it takes place after several reboots) screen mode switches to 640x480 4 bit (16 colors) with no possibility to enable higher screen resolution or color depth.
there are no exlamation marks in device manager, no failures or errors in drivers installation log.
to setup normal video mode manually or automatically via wizard
(system tray notification in case of low-res) is useless too. 640x480
4bit stays unchangable. it may look like it is able to apply 1280x800
32bit or another common video mode via screen control applet but nothing happens after pressing apply
in case of removing original device drivers and using standard vga everything is ok. also in case of booting in safe mode vga driver normally works at standard 1024x768 32bit with no problems.
various versions of compatible Intel Graphics drivers were tested (2007, 2008, 2009, 2010) with no effect.
IEGD drivers is impossible to use cause they are mixing video outputs on notebooks and netbooks.
now we got the problem on Toshiba notebook, earlier there were HP/Compaq, Asus and other notebooks and netbooks with on-board graphics of 9-series.
in all cases Windows XP Pro SP3 was used with no antivirus software.