It's not fixed in Ubuntu 12.10 (I've just tested):
xserver-xorg-video-intel 2:2.20.9-0ubuntu2
linux-image-3.5.0-17

but in a downstream bug ( https://bugs.launchpad.net/ubuntu/+source
/xserver-xorg-video-intel/+bug/745608/comments/155 ) people mention that
using SNA resolves the issue.

Jesse:
What change were you thinking might have fixed this issue?

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https://bugs.launchpad.net/bugs/745608

Title:
  [915GM] font corruption on Intel GMA900

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