In Jaunty, we had 116_8xx_disable_dri.patch which turned off DRI for i8xx cards:
"because it fails to run without freezing on i810 and i865G chips. (See LP 304871)"
The x-updates (and Karmic) packages have reenabled DRI, that's why you might get trouble.
Can you please confirm that you are running without DRI with the Jaunty package, and that you can run the x-updates package fine with DRI disabled? Use this in the Device section of your xorg.conf: Option "DRI" "off"
In Jaunty, we had 116_8xx_ disable_ dri.patch which turned off DRI for i8xx cards:
"because it fails to run without freezing on i810 and i865G chips. (See LP 304871)"
The x-updates (and Karmic) packages have reenabled DRI, that's why you might get trouble.
Can you please confirm that you are running without DRI with the Jaunty package, and that you can run the x-updates package fine with DRI disabled? Use this in the Device section of your xorg.conf: Option "DRI" "off"