I've applied the last patch from 
https://bugs.freedesktop.org/show_bug.cgi?id=7112
and recompiled the driver. It works for me.
Driver attached

** Attachment added: "Binary driver"
   
http://librarian.launchpad.net/4936561/xserver-xorg-video-s3_0.4.1-0ubuntu1.1_i386.deb

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Server failure with S3 86c764/765 [Trio32/64/64V+]
https://launchpad.net/bugs/33504

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