Hello, I apologize if this is the wrong place to comment, but just
wanted to add I am seeing the same problem, except with an ATI driver,
not intel. If it helps:

KDE 4.5.1 (latest as of writing)

With desktop effects OFF:

  glxgears: 25,000 frames in 5 seconds
  fgl_glxgears: 4500 frames in 5 seconds

  (this is great!)

With desktop effects ON (without blur)

  glxgears: 4,000 frames in 5 seconds
  fgl_glxgears: 1100 frames in 5 seconds

With desktop effects ON (with blur)

  glxgears: 500 frames in 5 seconds
  fgl_glxgears: 200 frames in 5 seconds

I have ATI Mobility Radeon HD 3650
Just a few days ago the driver was updated and reports as follows (from their 
Catalyst center)
- 2d Driver version 8.72.11
- RandR version 1.3

Makes a huge difference with some apps -- e.g. Firefox 4 beta's new tab
candy/panorama thing is incredibly slow and jumpy with desktop effects
on. With desktop effects off, it is brilliantly smooth...

Let me know what other info you want...

-- 
Slow desktop effects (KDE 4.5)
https://bugs.launchpad.net/bugs/617737
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