I have the same problem on a HP Omnibook XE3.

The following xorg.conf addition works great for me:

 Section "Device"
  Identifier "Configured Video Device"
  Driver "intel"
  Option "AccelMethod" "exa"
  Option "MigrationHeuristic" "greedy"
  Option "ExaNoComposite" "false"
 EndSection


** Attachment added: "lspci.txt"
   http://launchpadlibrarian.net/29257744/lspci.txt

-- 
[i830] font drawing corruption regression ubuntu intrepid
https://bugs.launchpad.net/bugs/293059
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