This issue is fixed in Ubuntu Karmic beta
ii xorg 1:7.4+3ubuntu5
X.Org X Window System
ii xserver-xorg-video-tdfx 1:1.4.1-1
X.Org X server -- tdfx display driver
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[Jaunty] X quits with code 0177 when moving windows or scrolling using tdfx
video driver
https://bugs.launchpad.net/bugs/351532
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