I'm unable to reproduce this bug anymore.
running up-to-date xorg-edgers
https://launchpad.net/~xorg-edgers/+archive/ppa
mesa 7.6
xserver 1.6.2
xserver-xorg-video-intel 2.8.0
kernel 2.6.30-10 - KMS
performance on i945 is poor ( ~ -40% than I remember on XAA - now around 20fps)
But no crashes or lockups on Steam or NonSteam.
I will continue to test.
But for now closing as fixed.
** Changed in: mesa (Ubuntu)
Status: Incomplete => Fix Released
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[intel] xserver lockup, mouse movable, sound in loop, SysRq unusable
https://bugs.launchpad.net/bugs/296825
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