Sorry, I should have updated this bug long ago. Yes you are correct  
it's been fixed without any manual tweaks, for quite some time.

On Dec 22, 2007, at 3:46 PM, Timo Aaltonen wrote:

> I'm marking this bug as fixed, since there has been numerous new
> releases of the intel driver. In hardy intel uses EXA, and bug 88696  
> is
> open to track the speed regressions.
>
> ** Changed in: xserver-xorg-video-intel (Ubuntu)
> Sourcepackagename: xorg => xserver-xorg-video-intel
>       Status: Fix Committed => Fix Released
>
> -- 
> Intel 945GM / 950GMA Video Very Slow In Xorg 7.0
> https://bugs.launchpad.net/bugs/48884
> You received this bug notification because you are a direct subscriber
> of the bug.

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Intel 945GM / 950GMA Video Very Slow In Xorg 7.0
https://bugs.launchpad.net/bugs/48884
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