The problem is fixed with the new package:
xserver-xorg-video-intel_2:2.7.99.902+git20090716.r1.bb300738-0ubuntu0sarvatt~jaunty_i386.deb
Thanks
** Changed in: xserver-xorg-video-intel (Ubuntu)
Status: Incomplete => Fix Committed
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[i915G] xserver-xorg-video-intel_2:2.7.99.902 crashes X on jaunty
https://bugs.launchpad.net/bugs/400221
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