This now appears to be totally, utterly fixed in Ubuntu Hardy with all
updates as of 2008-02-22 (xserver-xorg-video-intel 2:2.2.0.90-2ubuntu7)
on the Intel X3100 (965), eg. my Dell Inspiron 1520.

Notably:

* Shadows look correct on windows in Compiz

* Video runs both windowed and full-screen in Compiz totally smooth
without jerkiness

* No extra configuration required in xorg.conf

* Is it my imagination or is 3D just smoother and faster in general? Eg.
no jerkiness/tearing on Compiz cube anymore.

* Again, is it my imagination or is text scrolling now smoother and
faster in general? Eg. no jerkiness in Firefox anymore.

However a new bug has been discovered:

* No simple, obvious way to remotely buy Bruce Harrington a pint

-- 
[hardy] Enabling "Normal" effects produces badly drawn window shadows.
https://bugs.launchpad.net/bugs/175774
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