There seems to be a fix for this on the Ubuntu Forums,
http://swiss.ubuntuforums.org/showthread.php?t=1307001&page=3 post #22.
I logged in with effects set to none. Uninstalled the compiz components
as per the forum post then reinstalled. Set-up compiz icon and then
turned on my preferred effects
** Package changed: compiz (Ubuntu) => xserver-xorg-video-intel (Ubuntu)
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Compiz and Intel 82945G/GZ Card Causes Freeze
https://bugs.launchpad.net/bugs/517371
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ubuntu-bugs mailing list
I realise that this bug is similar to Bug #492271 but following the
comments there I am logging this as a separate bug due to differences in
hardware.
Please contact me should you require any further info (and tell me how
to retrieve it for you)
Thank you!
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Compiz and Intel 82945G/GZ Card Cau