I can reproduce this everytime with the following steps.

1) Click terminal icon from the panel
2) Type xterm in the console
3) xterm starts and video begins to flicker.

Sometimes it flicks back in for a second or so only to disappear again.
I find that if I have other applications open (firefox for instance)
then I get a continual loop of black screen->video back->black screen.

** Attachment added: "Video of xterm imx51 bug"
   http://launchpadlibrarian.net/33114496/IMG_0097.MOV

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Display unstable when running xterm
https://bugs.launchpad.net/bugs/430969
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