It seems the intel driver in the Ubuntu repositories is still pretty old. You can download a new one from their website, though and install it manually.
I wish there was an updated package available for hardy. You can probably use the intrepid package again, though. It has version number 2.3.2. Then you can leave the EXA acceleration enabled without the related problems with e.g. Opera.
The current packages for intrepid need the new X server. But you can usually still find the old package somewhere with a bit of googling.
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