Couldn't find a version entry for the 1.4 server. odd. Anyway, with Xorg 1.4, any terminal emulator based on the VTE widget (eg: gnome-terminal or xfce Terminal) is very very very slow to resize. Over a second delay before the window resizes after the drag is made. The same build of the terminal emulator and vte (0.16.9) with Xorg 1.3 is fast and responsive.
Please attach (as opposed to paste) the full xorg.conf and Xorg.0.log files. Also, what kind of window manager are you using, do you have any special terminal settings such as transparent background, ...
Not sure why I left out so much relevant information... This is with the nvidia binary driver and xfwm4 doing xrender accelerated compositing or compiz doing GL accelerated compositing. According to this thread: http://www.nvnews.net/vbulletin/showthread.php?t=98277 it's because of the switch from XCopyArea to a Composite call in Xorg 1.4. The suggestion to change the pixmap allocation policy of the driver does help but it's not perfect. So it seems this bug just reduces to the general one of how to do resizing efficiently under compositing.
nvidia have introduced multiple optimizations into their latest drivers to make this fast.
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