Turns out this was/is a problem with a new version of xserver-xorg-video-intel.
The problem disappears when using vesa driver or downgrading to an older 
version of xserver-xorg-video-intel.

For anyone interested: I have an Intel X3100 (GM965) and
xserver-xorg-video-intel Version 2:2.2.0-1 does not work (problem description 
see post above)
xserver-xorg-video-intel Version 2:2.1.1-4 does work

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Firefox causes massive Xorg CPU usage
https://bugs.launchpad.net/bugs/38131
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