I have just finished the tests:

1) Option "NoAccel" "true"
System boots OK - no problems found.

2) Option "AccelMethod" "XAA"
System freezes as previously on "waiting" mouse cursor

3) Option "ExaNoComposite" "true"
System freezes a bit later  with "arrow" mouse cursor

Seems that your NoAccell sugestion fixes all the issues! :)

-- 
[regression] Jaunty and Intrepid screen xserver won't start
https://bugs.launchpad.net/bugs/367442
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