Ubuntu – Ubuntu Desktop shifted to right

I am using Ubuntu 12.04 (precise) Kernel : 3.5.0-18-generic

I am encountering a strange problem, my whole desktop has shifted to right. This happened after I restored my system, I was getting a blank screen earlier.(something is better than nothing).

For some reason it also shows my display as laptop.

Running xrandr

xrandr: Failed to get size of gamma for
output default Screen 0: minimum 640 x 480, current 1024 x 768,
maximum 1024 x 768 default connected 1024×768+0+0 0mm x 0mm
1024×768 0.0* 800×600 0.0 640×480 0.0

Running lspci

lspci -nn | grep VGA

00:02.0 VGA compatible controller [0300]: Intel Corporation 2nd
Generation Core Processor Family Integrated Graphics Controller
[8086:0102] (rev 09)
My Display on window supports maximum of 1366*768.
I do not want to reinstall everything please help.

It is cycled around as mentioned by Eliah Kagan
For correcting my blank screen issue I edited my grub file I edited this line and added nomodeset, without it screen gets all grained up.

GRUB_CMDLINE_LINUX_DEFAULT="quiet splash nomodeset "

When I boot from live CD also I get the same shifted screen

Update 2

Tried booting from live CD with 11.04 same issue

Update 3
.xsession-errors file : http://pastebin.com/uveSgNa8

Update 4

xrandr -q | grep -w connected

xrandr: Failed to get size of gamma for output default

default connected 1024×768+0+0 0mm x 0mm