As mentioned in Comment #9, this issue is still present in 12.04:

$ apt-cache policy xserver-xorg-video-intel
xserver-xorg-video-intel:
  Installed: 2:2.17.0-1ubuntu4.4
  Candidate: 2:2.17.0-1ubuntu4.4
  Version table:
 *** 2:2.17.0-1ubuntu4.4 0
        500 http://archive.ubuntu.com/ubuntu/ precise-updates/main amd64 
Packages
        100 /var/lib/dpkg/status
     2:2.17.0-1ubuntu4 0
        500 http://archive.ubuntu.com/ubuntu/ precise/main amd64 Packages

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https://bugs.launchpad.net/bugs/747723

Title:
  Screen Corruption i915 Intel video

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