As per wirechief's last comment, this seems to be gone in 2.7.0, which
is uploaded to karmic (and a backport is available from x-updates).
** This bug is no longer a duplicate of bug 345119
[i965 X3100] X freezes/crashes randomly, only mouse pointer still functional
** Changed in: xserver-xorg-video-intel (Ubuntu)
Status: Incomplete => New
** Changed in: xserver-xorg-video-intel (Ubuntu)
Status: New => Fix Released
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[i965gm] [jaunty] desktop freezes suddenly
https://bugs.launchpad.net/bugs/361778
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