I've just upgraded my fit-PC2 from Ubuntu 10.04 to 10.10 and it is still running fine with the poulsbo driver!
The update process did most of the part automatically. I had to remove manually the driver xserver-xorg-video-nouveau which was installed before the update could be run. Don't ask me why...
After upgrading it is very important to reactivate the psb driver repository by hand in /etc/apt/sources.list.d/gma500-ppa-lucid.list
deb http://ppa.launchpad.net/gma500/ppa/ubuntu maverick main # Bei Aktualisierung zu maverick deaktiviert
Otherwise the psb driver gets lost and your xserver won't work. Don't forget to do by hand a
sudo apt-get update; sudo apt-get upgrade
After a reboot this was nevertheless the case but happily the console was working. The reason for this failure was the xorg.conf which changed back to the one using intels iegd. I copied the old one to xorg.conf and now it's working again.