Gerard,
as I supposed, you have an X-series ATI video card and the "ati open driver" is 
badly broken when using compiz and (in general) X composite extension for this 
kind of hardware.
I have an ATI X700 and I'm having the same problem described by you (X freezes 
but mouse still moving).
Take a look at those links below:

https://bugs.freedesktop.org/show_bug.cgi?id=15096
https://bugs.launchpad.net/xf86-video-ati/+bug/108527
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-ati/+bug/195051

For now, (if it's not already done) ubuntu devs just have to blacklist
this video card in the compiz startup script.

Please, attach the output of this command ' lspci -n | grep 1002'

Thanks

-- 
compiz.real crashed with SIGSEGV after a random amount of time
https://bugs.launchpad.net/bugs/190948
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