Workaround is posted in the duplicate:
>I have open file /usr/bin/compiz with a text editor and comment the following 
>line:
>T="$T 8086:2982 8086:2992 8086:29a2 8086:2a02 8086:29a12" # intel 965 (xv 
>video problem)
Does not fix video problems but if you don't need that this enables you to turn 
on compiz.

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Gutsy compiz won't enable on intel 965 laptop after 9/18/07 updates
https://bugs.launchpad.net/bugs/140833
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