I can confirm this bug. I have the exact same behavior on my Intel
GM965:
00:02.0 VGA compatible controller: Intel Corporation Mobile GM965/GL960
Integrated Graphics Controller (rev 0c)
Subsystem: Lenovo Device 20b5
Flags: bus master, fast devsel, latency 0, IRQ 28
Memory at f8000000 (64-bit, non-prefetchable) [size=1M]
Memory at e0000000 (64-bit, prefetchable) [size=256M]
I/O ports at 1800 [size=8]
Capabilities: <access denied>
Kernel driver in use: i915
Kernel modules: i915
It seems only to appear on some windows though. For example, Update
Manager windows can be resized without any artefacts...
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[Karmic] loss of window border when using compiz resize plugin, option=normal
https://bugs.launchpad.net/bugs/454218
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