This bug is affecting me as well.  I have Ubuntu 10.04 with Compiz, on an Acer 
4720z laptop.
I first noticed it when my Awn toolbar was not loading properly.  It would load 
half way off of the desktop with no background.  I then found that my desktop 
visualization setting had been reset to 'none.'  I tried resetting it to 
'extra' but then got the error that my laptop did not have a fast enough 
graphics card to run on this setting, even though I've had it on that setting 
for the last 3 years.

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https://bugs.launchpad.net/bugs/877905

Title:
  After upgrading Xserver video does not work properly

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