One question, mate. Did you ever get this sorted?
I'm also the (un)lucky owner of a Thinkpad 560 and I cant get X to work. I reckon its the DSTN screen that's making a fuss, but all i get is distorted colors. Mostly variations of blue or gray-ish green. Running RC2 Frugal install atm. Install done from a maxed Tecra 550CDT.