Workaround found:
sudo apt-get install notify-osd fixed the problem for me. I have no
idea why that package was not included in the upgrade, but there you go!
Charlie
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Notifications not updated to Jaunty-style
https://bugs.launchpad.net/bugs/366915
You received this bug notification because
** Attachment added: "Dependencies.txt"
http://launchpadlibrarian.net/25973234/Dependencies.txt
** Attachment added: "ProcMaps.txt"
http://launchpadlibrarian.net/25973235/ProcMaps.txt
** Attachment added: "ProcStatus.txt"
http://launchpadlibrarian.net/25973236/ProcStatus.txt
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Notifi