i have the same problem, but since kernel 2.6.31-6 & 2.6.31-7.

2.6.31-5 works for me. its a eeepc 701 with intel 915GM chipset.

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[i945GM] (Needs kernel 2.6.31-6) display corruption when moving desktop windows
https://bugs.launchpad.net/bugs/399829
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