I will experiment with the transparency off-on procedure, but I have maybe 
60-80 machines in my list. The
transparency doesn't just not work; it is subject to a fantastic amount of 
flicker which is extremely disruptive and distracting.
The screen, at rest, with two gnome-terminal windows running, will be alive 
with flickering screens, going dark and light. As your
cursor moves across a gnome-terminal window, boxes and columns will form and 
disappear, following the cursor.
It would be well for the developers to try and understand just where this 
problem originates, and how it might be cured
during the update process; it would seem natural to solve this problem during 
the package install process....   or the upgrade experience will be harrowing 
for those going thru the process, and not understanding why the new version of 
the OS seems to be a downgrade instead of an upgrade for the power users of 
gnome-terminal.

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https://bugs.launchpad.net/bugs/561370

Title:
  gnome-terminal transparency no longer works in lucid

Status in gnome-terminal package in Ubuntu:
  New

Bug description:
  Binary package hint: gnome-terminal

  Hello,

  the transparency in gnome-terminal on LUCID no longer works, I have
  only solid color, whatever changes I make in the profil.

  Thanks for your help.

  LGDN.

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https://bugs.launchpad.net/ubuntu/+source/gnome-terminal/+bug/561370/+subscriptions

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