wobbly windows is not the cause for this problem.

checked with a few applications and only the terminal window was opening
under the top panel.

Workaround to stop the windows from opening offscreen:

Compiz Settings manager > Put > Misc. options  > select "Window Center"
"Avoid Offscreen" and put padding > "pad top" to the size of the panel
(mine is set to 25pixels, standard is 45 i believe)

Compiz settings manager > Place windows > Workarounds selected and
"Placement mode" set to "smart"

This works for me, i dont know if this will fix the problem for
everybody because i am fairly new to linux myself.

-- 
Wobbly makes Title bar hide below gnome-panel
https://bugs.launchpad.net/bugs/82654
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