I have the same problem. The contents of windows become dark and barely
readable. The cursor, window top border and panels remain unaffected.
I'm running Lucid 10.04 with kernel 2.6.32-23 all updates as of an hour
ago.

I have the following video hardware:

*-display
                description: VGA compatible controller
                product: Radeon RV250 [Mobility FireGL 9000]
                vendor: ATI Technologies Inc
                physical id: 0
                bus info: p...@0000:01:00.0
                version: 02
                width: 32 bits
                clock: 66MHz
                capabilities: agp agp-2.0 pm bus_master cap_list rom
                configuration: driver=radeon latency=66 mingnt=8
                resources: irq:11 memory:d8000000-dfffffff(prefetchable) ioport:

Notify me if you need any additional information.

-- 
[Legacy Radeon cards] Desktop effects/compiz: display brightness fluctuation 
with zoom, workspace switch or Expo
https://bugs.launchpad.net/bugs/539163
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