I am going to remove the VideoRam calculation section soon as it is "no longer recommended" The following is the xorg.0.log from following that section:
(WW) intel(0): VideoRam configuration found, which is no longer recommended. (II) intel(0): Continuing with default 0kB VideoRam instead of 261120 kB.
--Sand Lee 20:18, 2 June 2009 (EDT)
Actually I just noticed that the above section should fall under the Hotplug Disabled section, so I won't remove it, I'll just make it clearer. --Sand Lee 20:38, 2 June 2009 (EDT)
In the KMS section, the 'early' start way of doing things states that the file /etc/modprobe.d/modprobe.conf should be edited and appended to the FILES= section of mkinitcpio.conf. However, isn't it easier to put "i915.modeset=1" on the kernel line in grub? When doing so you don't need to rebuild the initramfs each time you want to try KMS or to temporarily disable it. You can simply edit the kernel line on the grub screen when booting.