I upgraded xserver-xorg-video-intel to 2.7.1 from the PPA and I can
still reproduce the bug.  I have exactly the same issue as described by
the original reporter using the Jaunty UNR interface with desktop
effects enabled on my Dell Mini 9.

-- 
[i945gme] enabling visual affects causes graphics glitches for netbook remix 
(Jaunty Beta)
https://bugs.launchpad.net/bugs/352865
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