12.04 lenovo thinkpad r60: how to setup video ?

What is the output of:

sudo lshw -C display; lsb_release -a; uname -a

Thanks

*-display:0
       description: VGA compatible controller
       product: Mobile 945GM/GMS, 943/940GML Express Integrated Graphics Controller
       vendor: Intel Corporation
       physical id: 2
       bus info: pci@0000:00:02.0
       version: 03
       width: 32 bits
       clock: 33MHz
       capabilities: msi pm vga_controller bus_master cap_list rom
       configuration: driver=i915 latency=0
       resources: irq:16 memory:ee100000-ee17ffff ioport:1800(size=8) memory:d0000000-dfffffff memory:ee200000-ee23ffff
  *-display:1 UNCLAIMED
       description: Display controller
       product: Mobile 945GM/GMS/GME, 943/940GML Express Integrated Graphics Controller
       vendor: Intel Corporation
       physical id: 2.1
       bus info: pci@0000:00:02.1
       version: 03
       width: 32 bits
       clock: 33MHz
       capabilities: pm cap_list
       configuration: latency=0
       resources: memory:ee180000-ee1fffff
No LSB modules are available.
Distributor ID: Ubuntu
Description: Ubuntu 12.04.1 LTS
Release: 12.04
Codename: precise
Linux pablo-Thinkpad-R60 3.2.0-29-generic #46-Ubuntu SMP Fri Jul 27 17:04:05 UTC 2012 i686 i686 i386 GNU/Linux
pablo@pablo-Thinkpad-R60:~$

The driver is loaded. It is part of the default OS

when the machine had windows It had more resolution options and the video output was switchable between the laptop monitor ,the vga output, and the s-video jack. is that possible in ubuntu?

Usually it is. Make sure the external device is connected and click the wheel like icon in the right upper corner and choose the second entry.
If you don't see any option there, please post the output of the command:

xrandr

Have you tried the display item in dash? If yourdisaply is not reporting its abilities then you may need an xorg.conf file.