I am getting the same thing in Ubuntu 12.10, with regular Unity.

Ubuntu 12.10 AMD64, Unity, using an AMD/ATi Radeon HD 5700-class card
with fglrx.

Sorry I don't know how to crop out my second monitor, so just ignore the
right half of these screenshots. But as you can see I am getting ready
to drag the Nevernote icon around:

http://i.imgur.com/1LADh.jpg

And then when I drag it, a wild bunch of colors appears around the icon:

http://i.imgur.com/6qk7M.jpg

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https://bugs.launchpad.net/bugs/985039

Title:
  Graphical distortion when dragging icons from Dash

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