Does this issue happen with Gutsy Live CD too?
If it still happens a test with the Hardy Heron Alpha would be great. It is
currently under development and contains an updated version of the -intel
driver. You can download and try the new Hardy Heron Alpha release from
http://cdimage.ubuntu.com/releases/hardy/ . You should be able to test the new
-intel driver using the LiveCD. If you can, please verify if this bug still
exists or not and report back your results. General information regarding the
release can also be found here: http://www.ubuntu.com/testing/ .
Btw. compiz isn't blacklisted anymore for i965 chipset in Hardy afaik.
Thanks.
** Changed in: xserver-xorg-video-intel (Ubuntu)
Status: Confirmed => Incomplete
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No Direct Rendering after closing Compiz on Intel 965
https://bugs.launchpad.net/bugs/147908
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