It seems that the current (and previous) lucid kernel simply cannot work
well enough to be usable on my notebook at least. Using
http://kernel.ubuntu.com/~kernel-ppa/mainline/v2.6.34-rc3-lucid/ works,
but that's not the default kernel for lucid, of course. 2.6.32.21-31
makes xorg crashes on XVideo but also at some other cases according to
my experience, switching off KMS does not help. The newer kernel in
lucid since then (2.6.32.21-32) is even more worse, since the xorg does
not even start, and machine freezes completly. So for me at least this
bug makes lucid unusable on my hardware which is a show-stopper.
Currently I am using 2.6.34 kernel from that PPA to be able to use
lucid.

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[855GM] GPU hang when an application tries to use XVideo
https://bugs.launchpad.net/bugs/554835
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