Can confirm bug and workaround with further details.

On current Hardy with chipset and video card:

00:00.0 Host bridge: Intel Corporation Mobile PM965/GM965/GL960 Memory 
Controller Hub (rev 0c)
00:02.0 VGA compatible controller: Intel Corporation Mobile GM965/GL960 
Integrated Graphics Controller (rev 0c)

With xorg (1:7.3+10ubuntu4) and intel driver (2:2.2.0.90-2ubuntu2):

2D acceleration, especially text scrolling is fast, even with compiz
enabled.

Xv video playback works fine, but when compiz enabled it is slow and
drops a lot of frames.

When having a virtual display (even below or equal to 2048x2048) with
multiple display devices (regardless of clone or extended mode), a
system hang doesn't occur anymore when running 3D apps.

-- 
EXA is balls-achingly slow
https://bugs.launchpad.net/bugs/177492
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