Public bug reported:

Binary package hint: gnome-panel

I am using Ubuntu 8.10, updated as of March 10th.

gnome-panel:
  Installed: 1:2.24.1-0ubuntu2.1

I have no idea how this happened, but gnome has gotten into a state
where I cannot make my panels transparent.  When I right click on a
panel and go to properties and set it to color and set transparency it
turns white instead of making it transparent.

See screenshots.

I had compiz fusion enabled, but nuking that did not appear to fix
anything.

** Affects: gnome-panel (Ubuntu)
     Importance: Undecided
         Status: New

-- 
8.10 - panels display as white instead of transparent
https://bugs.launchpad.net/bugs/340335
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