This is probably video card related. I'd say disable Compiz but apparently you tried that. Maybe you need to install the emul-linux-x86-soundlibs package too?
To make testing easier, you could could set fullscreen mode to false (in /opt/WorldOfGoo/properties/config.txt) so the game runs in a window, so hopefully you can then close the window when it locks up, instead of having to reboot.
I already have emul-linux-x86-soundlibs installed. I also tried using SDL_AUDIODEVICE = dummy, with the same results... I changed fullscreen to false, and the game does launch in a window, but my machine still locks up, displaying artifacts on the screen. I am still able to move my mouse cursor, but cannot click on anything. I'm attaching a "screenshot" that shows what my screen looks like after launching WorldOfGooDemo. I'd say you're right on the money thinking it's video card related...