For now, I have restored usability to my system by downgrading the
xserver-xorg-video-intel package to a jaunty version.  I used the
following method:

1) Downloaded: 
http://launchpadlibrarian.net/27624866/xserver-xorg-video-intel_2.6.3-0ubuntu9.3_i386.deb
2) sudo dpkg -i xserver-xorg-video-intel_2.6.3-0ubuntu9.3_i386.deb
3) sudo aptitude install xserver-xorg-video-intel=2:2.6.3-0ubuntu9.3
4) echo "xserver-xorg-video-intel hold" | sudo dpkg --set-selections
5) Verified hold by issuing: apt-get -s upgrade

(Source: http://tech.akom.net/archives/45-Upgrading-to-Ubuntu-9.10
-Karmic-Koala-breaks-X-xorg-on-intel-driver-on-945G-chipset.html)

I was able to re-enable gdm, my text consoles work now, the font
corruption has gone away, the crashes from changing the desktop
background are gone and the 10 second delays seen when switching between
windows are gone.  I still don't have dri, but I do have a usable
desktop now.

-- 
X crash
https://bugs.launchpad.net/bugs/471844
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