T61 Insufficient Resources problem with Intel GMA

[ptr727]

T61 running Vista Ultimate x86

Machine is new, still being setup, other than Office 2007 it has no apps.

All was working fine, then after either a Thinkpad software update or a Windows software update, I don't know exactly which, I suddenly was unable to put the machine to sleep, i.e. the Sleep start menu option is greyed out.

Running powercfg -a shows that "VgaSave" is preventing the machine to sleep.

Looking in device manager shows the graphics adapter as Intel 965 chipset, and there is an exclamation mark on the device, and the details says there are insufficient resources.

I uninstalled the device, and installed the Intel GMA 15.7 version for Vista, rebooted, same problem, insufficient resources.

Any ideas how to fix this (without starting the install from scratch)?

Regards
P.