I did not have any flickering with Jaunty stable. It would be better
upgrading the video drivers only since Karmic is pretty unstable now.
Try the drivers from the ubuntu-x-swat ppa:

https://edge.launchpad.net/~ubuntu-x-swat/+archive/x-updates


Anyway, if you want to upgrade to karmic you don't have to format. Just open a 
terminal and write:

sudo do-release-upgrade -d

-- 
[i945] Screen flickering after logging in
https://bugs.launchpad.net/bugs/312518
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