More clarity on my case, seen on every machine I have installed Ubuntu
Gutsy Beta on.

* Attempt to set "Initiate Window Resize" to <Alt>Button3 instead of 
<Alt>Button2
   The request is completely ignored, nothing changes and no warning of 
replacing Initiate Window Menu is given.

* Attempt to clear or change "Initiate Window Menu"
    A warning may be given if it overrides another binding, however, the 
binding is always replaced with just Button3
    and, from then on, the window manager acts as if Alt is always held down.

* Hold Alt, click and replace the binding to <Alt>Button3, the only
combination of characters which fixes compiz.

* Give up

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compiz config settings manager cant change resize window shortcut
https://bugs.launchpad.net/bugs/146736
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