Can't Update Intel GM965 Chipset Driver

I have a Dell Studio 1535 and I can't seem to update the driver for it. I know the issue with the GM965 drivers and Ubuntu and I've googled my brains out and tried everything that I've found, but still no luck.

I downloaded the - xserver-xorg-video-intel package, hoping it would fix the problem. When I try to install the package, I get an error saying "Error: Dependency is not satisfiable: libdrm-intel1" and I have no idea what that means or how I can fix it. I've tried editing the xorg.conf file by adding a modeline and I've tried the auto915resolution way, but nothing seems to help.

I really, really, really want to get my resolution up to 1200x1080 like its suppose to be. So any help would be great. Thanks. (Oh, and I'm running Ubuntu 8.10)