Intel releases open source 3D drivers for their integrated graphics, and they do have 3D acceleration. However, the 965 series chipset is brand-spanking-new, and so are the drivers for it. What I've gathered from dealing with this myself is that Ubuntu Edgy users experience problems getting 3d to work out of the box with this chipset.
Check out _bug 62135 in launchpad_, there's a recompiled package for MESA that will get 3D acceleration, but unfortunately won't fix beryl. On my system you *can* launch beryl, but nothing gets drawn in the windows (although everything does work even if I can't see it). At least Planet Penguin Racer, bzflag, and the various 3d xscreensavers are working now.
Also, if you have an LCD panel that won't run in its native resolution, read up on the modesetting driver that Intel is still working on in _this thread_. Note that the howto in the thread is not really relevant unless you compile the source code from about a month ago. The driver is now written to compile against the more recent xserver 1.3 which should make it into the next version of Ubuntu -- 7.04 Feisty Fawn.
3D is reported to work out of the box with these chipsets under Feisty as of herd 4, including beryl. The next pre-release snapshot, herd 5, has been slated for today, (March 1st).