I'm using the 2.8.1-1ubuntu2 driver in Karmic, and I just tried out blur again.
Here's a screenshot of one thing that happens. Short horizontal lines also 
appear all over the place.

** Attachment added: "screenshot2.png"
   http://launchpadlibrarian.net/32534872/screenshot2.png

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[i965] Compiz blur plugin causes screen garbage (UXA bug)
https://bugs.launchpad.net/bugs/363174
You received this bug notification because you are a member of Ubuntu-X,
which is the registrant for xf86-video-intel.

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