I added the ubuntu-x-swap ppa, and updated. The problem seems to be gone. I guess it was fixed by the swat team.
$ apt-cache policy xserver-xorg-video-intel xserver-xorg-video-intel: Installed: 2:2.9.0-1ubuntu1 Candidate: 2:2.9.0-1ubuntu1 Version table: *** 2:2.9.0-1ubuntu1 0 500 http://ca.archive.ubuntu.com karmic/main Packages 100 /var/lib/dpkg/status 2:2.9.0-1ubuntu1~xup~1 0 500 http://ppa.launchpad.net karmic/main Packages Here is what I did to add the swat ppa and fix my problem: sudo apt-key adv --recv-keys --keyserver keyserver.ubuntu.com AF1CDFA9 sudo add-apt-repository ppa:ubuntu-x-swat/x-updates sudo aptitude update sudo aptitude safe-upgrade sudo shutdown -r now -- Mouse pointer flicker and Xorg uses 100% of a CPU https://bugs.launchpad.net/bugs/446828 You received this bug notification because you are a member of Ubuntu-X, which is subscribed to xserver-xorg-video-intel in ubuntu. _______________________________________________ Mailing list: https://launchpad.net/~ubuntu-x-swat Post to : ubuntu-x-swat@lists.launchpad.net Unsubscribe : https://launchpad.net/~ubuntu-x-swat More help : https://help.launchpad.net/ListHelp