Adding some further information and this is related to sacha's post.

As mentioned before, I have seen this bug a lot (though less so
recently) on my Lucid laptop after upgrading it from Karmic > Lucid RC >
Lucid. That laptop has an nvidea graphics card and is running the Normal
Visual Effects setting (hence is using Compiz?).

I also have a desktop server that was running Hardy and I upgraded it to
Lucid. I haven't seen this bug ever on the server when running Lucid. It
has some awful builtin graphics chip and consequently has None selected
in the Visual Effects setting on Appearance Preferences (hence isn't
using Compiz?).

The only issue with the server I have noticed is that the Sound Icon
never appears (i.e. no way to control the volume other than starting
Sound Preferences - I am using an Creative XiFi Extreme PCI Sound Card
as there was no onboard sound - I guess this is why there is no icon).

So, conclusions that can be drawn from this:

- either Compiz is at fault, since the installation that doesn't use it isn't 
experiencing the issue.
- or the Sound Icon is somehow at fault, since the installation that for 
whatever reason doesn't show it isn't experiencing the issue.

-- 
visual corruption affecting several panel applets
https://bugs.launchpad.net/bugs/439448
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