Looks like problem is Kernel related.

http://beranger.org/v3/wordpress/2009/05/04/jaunty-kernel-2630-fixes-
the-intel-video/

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Unbearably slow full-screen video playback, Compiz disabled, extremely slow and 
jumpy backward scrolling in FireFox presumably due to absents of proprietary 
drivers for Intel Corporation Mobile 945GM/GMS, 943/940GML Express Integrated 
Graphics Controller
https://bugs.launchpad.net/bugs/370231
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