Unfortunately I was wrong. The problem persists with my system upgraded to 
jaunty.
The testing I've done was on Kubuntu live cd, probably kde handles things 
differently from gnome/compiz.


** Attachment added: "updated xorg.0.log"
   http://launchpadlibrarian.net/23265230/Xorg.0.log.old

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[i945] x server restarts itself w/ compiz on Intel 945GM [Intrepid]
https://bugs.launchpad.net/bugs/324998
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