I can confirm the problem on 11.10 32-bit. I'm running gnome-session-
fallback, without the overlay scrollbars.

Hardware: Acer Aspire laptop, Intel(R) Pentium(R) Dual CPU T3200 @ 2.00 GHz. 
Display: Mobile Intel® GM45 Express Chipset x86/MMX/SSE2.  

I usually have 3 or 4 tabs open, with unlimited scrolling enabled. It
gets slower over time, but it's still about 2 seconds to start the very
first tab.

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to gnome-terminal in Ubuntu.
https://bugs.launchpad.net/bugs/850649

Title:
  gnome-terminal extremely slow and display buggy

Status in “gnome-terminal” package in Ubuntu:
  Confirmed

Bug description:
  After the update to oneiric the gnome-terminal appears to be slow and
  display is sometimes buggy:

  * changing between windows and tabs is slow although other applications (like 
chromium) are not affected
  * sometimes the display is not updated and some parts (exactly on character 
box boundaries) of the terminal just show the background

  ProblemType: Bug
  DistroRelease: Ubuntu 11.10
  Package: gnome-terminal 3.0.1-0ubuntu3
  ProcVersionSignature: Ubuntu 3.0.0-11.18-generic 3.0.4
  Uname: Linux 3.0.0-11-generic x86_64
  NonfreeKernelModules: nvidia
  ApportVersion: 1.23-0ubuntu1
  Architecture: amd64
  Date: Thu Sep 15 08:28:30 2011
  EcryptfsInUse: Yes
  ExecutablePath: /usr/bin/gnome-terminal
  InstallationMedia: Ubuntu 10.10 "Maverick Meerkat" - Release amd64 (20101007)
  SourcePackage: gnome-terminal
  UpgradeStatus: Upgraded to oneiric on 2011-09-01 (13 days ago)

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