I have the same issue on an ATI Radeon AGP 3850.

What I did to make it start normally again was check the "Background
image" in the Background tab of the Profile options (without any image
selected for background) and clicked OK, I still get my regular
transparent background and it starts fast again.

I have no idea why this happens so I'm just shooting in the dark but for
me on the xorg radeon/ati driver getimage performance is horrid which I
think is related to why for example loading large images in Firefox
almost grinds my entire computer to an halt until the image has finished
loading.

This is supposedly fixed and improved to 10x faster something in the
xorg radeon driver 6.13rc2 or something like that so I'm waiting for
that to hit Lucid because I'm too stupid to get it unless it's in a easy
repo somewhere.

Now this is just a guess.

-- 
transparent background heavily delays gnome-terminal start up
https://bugs.launchpad.net/bugs/530094
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