Holy crap. KDE 4.2 frickin’ flies! And contrary to my previous post, now if I set IPP=2, everything’s blazing fast and I’m actually able to resize konsole again! WooooooT!!! YAY progress!!!
[[ UPDATE ]] : Added link to my previous post. I had already posted my xorg.conf settings and since then, the only thing I’ve changed was IPP=2 from IPP=1. HTH!