Short: Intel graphics users wanting Xorg, you'll need to change the default to UMS mode for Xorg 7.4. 7.5 will support KMS.
What you're seeing is Intel's new graphics stack.
They only support KMS now (in the Xorg driver, the kernel driver still has the UMS mode for backwards compatibility); if you wish to use UMS, add "options i915 modeset=0" to /etc/modprobe.conf before loading the extension/module.
As you've seen, the KMS stack conflicts with both the vesa framebuffer and the vesa driver (both tinyX and Xorg), because it sets the resolution itself. It gives less flicker, and the optimal resolution from the start (full-res console).
The module in KMS mode should be loaded in pure text mode; inside X or with a framebuffer it's likely to crash and burn.
So far Intel is the only one going this far; radeon and nouveau also support KMS, but theirs defaults off.
The intel driver in Xorg 7.4 doesn't support KMS IIRC, so to run with it turn modesetting off.