Questions
Q1
Why my NM70I-1037U system has problem to run with Ubuntu 12.04 OS?

There are some issues between Ubuntu 12.04 system with Intel NM70 chipset.

Please make sure to update to latest Kernal core or add the patch for on-board graphic.

Try to add "i915.i915_enable_rc6=0" to /etc/default/grub "GRUB_CMDLINE_LINUX_DEFAULT". Should look something like this then:
Code:
GRUB_CMDLINE_LINUX_DEFAULT="quiet splash i915.i915_enable_rc6=0"
Then run:
Code:
 
sudo update-grub
And reboot.