+1 same behavior here on my dell D830, as Earl pointed out the issue is
resolved in gutsy (but I can't run gutsy as its still a bit unstable for
my liking) - I think we just need the latest copy of this intel driver
backported to fiesty?

FWIW here is my card info as identified by lspci:
00:02.0 VGA compatible controller: Intel Corporation Mobile GM965/GL960 
Integrated Graphics Controller (rev 0c)

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intel gm965 freezes with 3d applications
https://bugs.launchpad.net/bugs/120834
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