I am having this same problem. I installed via Ubuntu Hardy Beta CD. I
enabled the restricted ATI driver through "Hardware Drivers" (jockey).
Update Manager updated compiz and replaced some packages. The reason
this is broken is that I do not have /usr/bin/gtk-window-decorator. I
believe this file is part of compiz-gnome. The only packages I've
installed manually are postgresql-8.2 and powertop. I think there is
something missing in the Ubuntu UI to include compiz-gnome.

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No window-decorations in compiz with GeForce MX 460 and Hardy [while Fedora 8 
worked]
https://bugs.launchpad.net/bugs/213025
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