I tested this in Arch, and it affects Arch's current version as well. Every version of GPM I've seen seems to have this issue. Kubuntu's power manager does not have this problem. I looked into the code for GPM, and noticed that xrandr is used to adjust the brightness. The HAL code has an option to check an fdi for brightness_in_hardware, but the xrandr code does not have any similar option. My C kung-fu is not sufficient to fix this problem on my own at this time, but I will continue to work at it. \
I don't think we want to disable xrandr entirely for this model, since this would likely break stuff like "dim after a few minutes" or dim on battery. Instead, I think there should be an option to disable brightness up and down events being controlled by xrander, based on gconf or a setting in GPM.
I tested this in Arch, and it affects Arch's current version as well. Every version of GPM I've seen seems to have this issue. Kubuntu's power manager does not have this problem. I looked into the code for GPM, and noticed that xrandr is used to adjust the brightness. The HAL code has an option to check an fdi for brightness_ in_hardware, but the xrandr code does not have any similar option. My C kung-fu is not sufficient to fix this problem on my own at this time, but I will continue to work at it. \
I don't think we want to disable xrandr entirely for this model, since this would likely break stuff like "dim after a few minutes" or dim on battery. Instead, I think there should be an option to disable brightness up and down events being controlled by xrander, based on gconf or a setting in GPM.