This sort of sounds similar to the 965 issue we solved by switching to
EXA+greedy migration heuristic.  Can you test this by launching X in
hardy configured to use EXA and the "greedy" migration heuristic?  For
example:

Section "Device"
  ....
        Driver          "intel"
        Option "AccelMethod" "EXA"
        Option "MigrationHeuristic" "greedy"
  ....
EndSection

If this solves the issue, then we should extend the fix for bug 177492
to cover this chipset as well.

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When compiz is enabled, videos and visualizations don't work properly
https://bugs.launchpad.net/bugs/184686
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