I had similar issue with Intel 915 GM chipset using Ubuntu 9.04 beta.
(See: https://bugs.launchpad.net/ubuntu/+source/xorg/+bug/354735)

My problem was solved after update xserver-xorg-video-intel to
2:2.6.3-0ubuntu4 to version 5.

Run Update Manager, install xserver-xorg-video-intel 2:2.6.3-0ubuntu5,
 and report if it fix the bug you reported.

 Thanks.

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[i945] xorg fails on i945GM (8086:27a2) (UXA bug)
https://bugs.launchpad.net/bugs/327941
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