I've found that the problem with visual effects is due to a Compiz blacklisted 
hardware (intel 965 and ATI graphics)
You can enable visual effects (at your own risk) by following the steps listed 
on Compiz Wiki:
http://wiki.compiz-fusion.org/Hardware/Blacklist

I've also found many bug reports involving this issue, so please someone
who's experienced with this site unify them somehow.

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[jaunty] Desktop effects could not be enabled
https://bugs.launchpad.net/bugs/363967
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