I think it's a problem in Compiz. This because the composite manager for 
Enlightment (e17) works.
Shading of windows and transparent windows works in E17. Therfore it can't be a 
driver problem. 

I have installed Ubuntu with E17 as a extra window-manager.

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Intrepid Compiz hangs on login for i830MG and i845 video cards
https://bugs.launchpad.net/bugs/259385
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