This seems like a Lion bug (going to file a bug report after a few more tests on my end).
I have a 2007 Core 2 Duo MBP (A1226) and I'm getting the same problem - system freezes whenever an external external monitors is plugged in (I've tried a number of different monitors - VGA, DVI, LCD, CRT - in the last few days. Interestingly, it doesn't freeze on a VGA projector I tried!)
After plugging in an external monitor, kernal_task jumps to ~100% CPU usage and loginwindow, powerd, configd, syslogd, and Console.app use up the other core. (I have kept Console and Activity Monitor open while testing this, of course...).
Within a few minutes, system becomes completely unresponsive and needs a hard-reboot. Unplugging the monitor cable has no effect - the system does not re-stabilize.
Same kernel message numerous times in the logs -
kernel: /SourceCache/xnu/xnu-1699.24.8/iokit/Kernel/IOUserClient.cpp:
mach_msg_send_from_kernel_proper {1000000d}
as well as
kernel: /SourceCache/xnu/xnu-1699.24.8/iokit/Kernel/IOUserClient.cpp: mach_msg_send_/iokit/Kernel/IOUserClient.cpp: mach_msg_send_from_kernel_proper {1000000d}
a few times, and
kernel: /SourceCache/xnu/xnu-1699.24.8/per {1000000d}
kernel: /SourceCache/xnu/xnu-1699.24.8/iokit/Kernel/IOUserClient.cpp: mach_msg_send_froserClient.cpp: mach_msg_send_from_kernel_proper {1000000d}
etc.
There was also a refcount error that might be relevant -
com.apple.systempreferences[186]: System Preferences(186,0x7fff7de83960) malloc: reference count underflow for 0x4001a6460, break on auto_refcount_underflow_error to debug.
I didn't have InsomniaT. (Uninstalling SmartSleep, which seemed similar, didn't help either.)