I followed the first set of instruction on this page
https://wiki.ubuntu.com/JauntyJackalope/ReleaseNotes#Other%20known%20issues
and it fixed the problem.  Just add Option "MigrationHeuristic" "greedy"
to the Device section of your xorg.conf  Now everything runs super
smooth, just like it should.  It looks very nice! This issue has also
been fixed for Karmic Kaola as you can see here
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-
intel/+bug/376030

I had also reverted back to the 2.4 intel driver long ago.

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System hangs for a while when changing background image
https://bugs.launchpad.net/bugs/359594
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