I have the very same problem on Thinkpad T42, changing xorg.conf
improves the situation, but still non as good as it used to be in
intrepid or hardy.

lspci | grep VGA:

01:00.0 VGA compatible controller: ATI Technologies Inc Radeon RV250
[Mobility FireGL 9000] (rev 02)

-- 
[r100-rv200] very poor Xorg performance - XAA solves this
https://bugs.launchpad.net/bugs/363238
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