I am currently running 1.4.2 (with XFree86 3.X) on my 560, and I have
the following entry in my /etc/XF86Config:

Section "Monitor"
    Identifier  "ThinkPad"
    VendorName  "IBM"
    ModelName   "560"
    HorizSync   25-79
    VertRefresh 20-76
    Modeline    "640x480" 28.32 640 664 760 800    480 491 493 525
    ModeLine    "800x600" 28.32 800 808 1024 1040  600 600 626 640
+hsync +vsync
EndSection

and the screen looks good.  I noticed Manuel posted some tar's for
XFree86 4.0 and I was interested in giving it a try.  I rewrote my
XF86Config file (now in /etc/X11) to match the new format, with the same
monitor settings.  However, under XF86 4.0 the lcd display does not look
sync'd with these settings any more - it is wrapped around and generally
messed up.  Anybody with a thinkpad played with 4.0 yet?  The 3.X and
4.0 configs that I used are available at
ftp://worldmap.net/pub/thinkpad/XF86Config-3 and
ftp://worldmap.net/pub/thinkpad/XF86Config-4

Thanks!  Mike.