Installing xserver-xorg-intel-2.4 apparently solves the problem!

https://wiki.ubuntu.com/ReinhardTartler/X/RevertingIntelDriverTo2.4

Works fine for me.

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[iGM45] Jaunty / Compiz slow and tearing on GMA 4500MHD
https://bugs.launchpad.net/bugs/349568
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