After struggle for some time to get compiz-fusion 0.6.2 to work on my old intel 855/GM graphics card, I finally got it working.
I was playing around reading some bug descriptions of intel xorg driver when I faced a comment from Ian which gave me some hope:
"Although I'm using Debian, if I turn this option off none of my terminal window contents get painted,[...]"
This is exactly the behavior I was facing when running compiz-fusion with newer driver (2.1.1). After making the change in xorg.conf... voilà! It worked perfectly! No more repaint problems!! Ah, the modification:
Option "XAANoOffscreenPixmaps" "true"
With this configuration set, I could go one more step and get mplayer composition to work. :)
I followed the instructions on this blog post about mplayer composition and compiled mplayer rc2 with the patch linked there and to my surprise it worked perfectly!!!
The only drawback is that the patch only works on 24bits and my card hasn't a good performance at 24 bits. At least I still can use compiz-fusion when in 16 bits and when I don't want to watch any movies or animes as I love to watch.
I hope this experience helps others to get their graphics card working with this awesome software which are compiz, compiz-fusion and mplayer!
Now I can see in my own machine all that I only watched on youtube videos :)