After all of the above, I restarted one more time, and it works fine.
But it's still to question, Ubuntu did not detect my graphics card using
just the installer. It even enabled compiz-fusion which means that
hardware acceleration worked. Hopefully, this can help you fix your
problems as well.

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[Gutsy Beta] 82865G Integrated Graphics Controller Not Correctly Identiified 
during setup
https://bugs.launchpad.net/bugs/146284
You received this bug notification because you are a member of Ubuntu
Bugs, which is the bug contact for Ubuntu.

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