Hello I can confirm this bug.

I have DELL Studio 1535 with Intel GM965.
I tried Ubuntu 9.04RC i386.

Effects disabled -> Minor XV video tearing, movies unwatchable for me.
Effects enabled -> Major XV video tearing plus general tearing while moving 
windows.

Is there any hope that the Intel guys will ever fix it?

On 8.04 everything was okay with effects off
On 8.10 problems started
On 9.04 nothing has changed since 8.10

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[i965] Massive Screen Tearing with 9.04
https://bugs.launchpad.net/bugs/359124
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