Here to report that Stefan Glasenhardt's workaround works perfectly.

I added the line:
Option "Legacy3d" "false"

to xorg.conf, which enabled hardware acceleration, allowing me to get to
the desktop WITH compiz. Perfect!

I've attached the requested outputs.

** Attachment added: "Output of "lspci -vvnn""
   http://launchpadlibrarian.net/24436941/lspci

-- 
[i845G] Fatal server error: Couldn't bind memory for BO front buffer (Jaunty)
https://bugs.launchpad.net/bugs/304871
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