Same bug here, just installed Ubuntu 9.04 yesterday, I was using
wallpaper-tray from synaptic and as usual set it so that my wallpaper
change every minute and I found that every minute, in top, Xorg took up
to 97% of my CPU and was lagging the whole system for about 5 to 15
seconds. It do appear it is because of the fade in effect when changing
wallpaper because it worked great with Ubuntu 8.10 and there wasn't any
fade effect. I am using a GeForce FX 5600 with the proprietary drivers
and in visual effects in Appearance I selected None (so no compiz).

I tried using Option "MigrationHeuristic" "greedy" and Option
"UseEvents" "on" in section Device in xorg.conf but to no avail.

Here's the line from top that shows it :
PID USER      PR  NI  VIRT  RES  SHR S %CPU %MEM TIME+  COMMAND
2641 root      20   0 88988  52m 9420 R 97.6 10.6     1:37.32 Xorg

My xorg.conf is quite simple :
Section "Device"
    Identifier     "Configured Video Device"
    Driver         "nvidia"
EndSection

Section "Screen"
    Identifier     "Default Screen"
    Device         "Configured Video Device"
    Monitor        "Configured Monitor"
    DefaultDepth    24
    Option         "AddARGBGLXVisuals" "True"
    Option         "NoLogo" "True"
    SubSection     "Display"
        Depth       24
        Modes      "nvidia-auto-select"
    EndSubSection
EndSection

-- 
Changing desktop background eats up all available CPU time
https://bugs.launchpad.net/bugs/376030
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which is subscribed to xserver-xorg-video-intel in ubuntu.

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