+1
I experience the same thing on a 945, with compiz, using EXA and 
MigrationHeuristic greedy. xv used to work with these settings some days ago. 
Now, same as you: it starts but uses 100%cpu and it is super slow. More system 
info available upon request.

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xv is not working on intel 965 (x3100) when using compiz
https://bugs.launchpad.net/bugs/201596
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