Got everything working finally. Here's how I did it if anyone else searches for it.
Since I use ArchLinux, commands are relative to it, modify as necessary.
1>Install latest xorg
pacman -Sy xorg
2> Install beryl
pacman -Sy beryl-svn-gnome (or beryl-svn-kde)
pacman -S beryl-svn-extras
3> Increase the amount of video ram for your card by editing the line -
Section "Device"
Identifier "Intel 82845 ...."
Driver "i810"
VideoRam 32768 (this was originally at just 8MB)
4> Edit the appropriate lines in xorg.conf to get the following stuff in it -
Section "Module"
Load "glx"
Load "dri"
EndSection
Section "Device"
Option "XAANoOffscreenPixmaps" "true"
Option "DRI" "true"
EndSection
Section "ServerLayout"
Option "AIGLX" "true"
EndSection
Section "Extensions"
Option "Composite" "Enable"
EndSection
5> Add the two commands to the gnome sessions, startup entries -
beryl-xgl
beryl-manager
6> Reboot/restart X server and voila, a wobbly beryl diamond should welcome you. In the gnome notification area, you will see the gnome settings diamond icon, right click to configure stuff.
Apparantely, even if my display card took physically just 8MB, I could set a higher value in the xorg.conf file. This will work only with the latest x.org/xfree86.
This link helped a lot as well -
http://lists.debian.org/debian-user/.../msg02592.html