I followed the hint mentioned above by Luca from bug 359600 and disabled
uxa then added these lines in xorg:

        Option "AccelMethod" "EXA"
        Option "MigrationHeuristic" "greedy"

While it did boost performance somewhat, it was still very sluggish.

-- 
(Needs UXA) Kubuntu Jaunty Intel 945 GM - Poor sluggish graphics performance in 
Kate text, etc.
https://bugs.launchpad.net/bugs/342923
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