I have the same issue here but I discovered that, if I run a 3D program like 
celestia, nexuiz or even a 3d screensaver like one with the wireframe ant, the 
problem vanishes with a -39 kernel. In a discussion with Chris Van Hoof today 
he tells me he thinks the new kernel just masks the error but, at least to the 
user's POV it actually solves it for the common applications the users run. I 
kept nexuiz running for more than 2 hours and haven't noticed a single freeze.
I would like to ask the priority to be raised as this can affect many new 
systems.

** Changed in: xserver-xorg-video-intel (Ubuntu)
       Status: Triaged => Confirmed

** Tags added: kernel-bug

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https://bugs.launchpad.net/bugs/761065

Title:
  [Sandybridge] Spurious "*ERROR* Hangcheck timer elapsed... blt ring
  idle" messages in dmesg when using compiz

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