965 is not blacklisted in karmic's compiz any more:
compiz (1:0.8.2-0ubuntu12) karmic; urgency=low
[...]
[ Michael Vogt ]
* debian/patches/028_compiz_manager_blacklist:
- remove GM965 from the blacklist again, the karmic intel
driver should work fine with it
[...]
** Changed in: compiz (Ubuntu Karmic)
Status: In Progress => Fix Released
--
[i965] X freezes starting on April 3rd
https://bugs.launchpad.net/bugs/359392
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which is the registrant for xf86-video-intel.
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