The Intel driver 2.8.0 has been uploaded to unstable. The biggest changes in there is that support for DRI1, XAA and EXA has been dropped. It means that the driver now always uses UXA and DRI2 now.
KMS (Kernel Modesetting) is still optional (and the non-KMS crash from 220.127.116.112 has been fixed in 2.8.0). But you might want to use a recent kernel, which means 2.6.30 or 2.6.31-rc.
There are still some problems with UXA/DRI2 on old boards such as my i865. So if you encounter any big problem, you might want to downgrade to driver 2.7.1 (some old packages are available at here) and switch away from UXA.