Here is my video xorg.conf which has compiz working great. I also have 
INTEL_BATCH="1"
Section "device" # 
        Identifier      "device1"
        Boardname       "Intel 965"
        Busid           "PCI:0:2:0"
        Driver          "intel"
        Screen  0
        Vendorname      "Intel"
        Option "MigrationHeuristic" "greedy"
        Option "AccelMethod" "exa"
        Option "ExaNoComposite" "true"
EndSection

Oddly I thought my exanocomposite was set to false, but maybe it changed
with an update? That was from a month ago I used false.

-- 
EXA is balls-achingly slow
https://bugs.launchpad.net/bugs/177492
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