well done!!Yes, it does work. I've been working on this all day. I just got done reinstalling to see what the truly necessary steps would be for a fresh install on my Dell 700m.
If I add "i915.modeset=1" to the the boot from a USB stick (I suppose CD will be the same), I then end up at the error screen "Ubuntu is running in low graphics mode". I clicked OK, then "Troubleshoot the error" then "Edit configuration", then edited "vesa" to "intel". Then I "closed", "cancelled" and the hit "Restart X". That got me into live mode with full screen support. Once there, I installed as usual.
After reboot, I hit "e" at the GRUB screen, and added "i915.modeset=1" at the end of the line with "quiet splash". Then hit Ctrl-X to finish booting. It all went off without a hitch.
So now I will edit my GRUB configuration to make it permanent, and everything will be done.
I'll leave what I wrote above, because maybe something there will be useful for some other hardware. But for the Dell 700m, it is that simple.