Disabled hardware acceleration in Intel gma500 cards

[പ്രതീഷ് പ്രകാശ്]

Version affected: Linux MInt 15 (Olivia) 32 bit [untested on other versions]
Kernel: 3.8.0-19-generic i686 (32 bit, gcc: 4.7.3)

System: Acer product: AOD270 version: V1.06
Mobo: Acer model: JE01_CT
Bios: Insyde version: V1.06 date: 03/05/2012
CPU:
Dual core Intel Atom CPU N2600 (-HT-MCP-)
cache: 512 KB flags: (lm nx sse sse2 sse3 ssse3) bmips: 6383.8
Clock Speeds: 1: 1600.00 MHz 2: 1600.00 MHz 3: 1600.00 MHz 4: 1600.00 MHz

Graphics:
Card: Intel Atom Processor D2xxx/N2xxx
Integrated Graphics Controller bus-ID: 00:02.0
X.Org: 1.13.3 drivers: vesa (unloaded: fbdev)
Resolution: 1024x600@60.0hz
GLX Renderer: Gallium 0.4 on llvmpipe (LLVM 3.2, 128 bits)
GLX Version: 2.1 Mesa 9.1.1
Direct Rendering: Yes

Upon running the live cd or booting the affected system logs into Gnome, but shows a notification that "Running in software rendering mode. Hardware acceleration is disabled." The bug may be reproduced on any system running on the affected hardware (that is gma 100).

As a result of disabled hardware acceleration it is now impossible to open video files. The system is running very slow as most of the graphics load is taken up by the CPU and apparently unusable.

The problem happens every time on the affected system after log on process and in effect render the whole system unworkable.