I filed Bug #658967 for ubuntu 10.10 standard and I think this might
actually be the same problem. I have almost the exact same problems
except mine only occur when my nvidia driver is enabled. I noticed you
posted on the nvidia Bug #629910 which I was also looking at as a
possible solution as enabling nvidia proprietary drivers started my
issues. Do you have a 200 series nvidia card, and are you running a core
i7 processor by any chance?

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Appearance settings do not work in Xubuntu 10.10 RC
https://bugs.launchpad.net/bugs/652731
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which is subscribed to nvidia-graphics-drivers in ubuntu.

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