Intel GMA GM965 Slow Video With Win7 RC/Beta Drivers

I tried to play Wolfire Games - Lugaru (i have bought the game but the demo is good test) on my laptop with Intel gma 965, or the X3100 if you prefer, and it is unplayable.

Using the included 965 driver with windows 7 RC and Beta both, and even updating to the newest version currently available on windows update, the game is unplayable. The mouse cursor lags, heavily, just in the menu screen. It froze the system overall when I tried to load a level.

I can play the game just fine on Linux with this laptop. And, after trying the older Vista drivers instead of the windows 7 drivers, it ran just perfectly. The vista drivers DID give me a BSoD afterwards though when I shut down. I didn't install them in vista compat mode.

I had the exact same problem with GeForce drivers on a desktop with the same game(and another game called Secondhand Lands). The included windows 7 video drivers overall seem severely crippled.