I just did a fresh install of Feisty 20070415 (current RC candidate) -
the Xinerama bug is fixed so I was able to test this behaviour again.
The bug remains, exactly as described in the original report, therefore
I am reopening.

Thanks
Matthew

** Changed in: gdm (Ubuntu)
       Status: Rejected => Unconfirmed

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windows fail to respect panel boundaries with second screen 'above'
https://bugs.launchpad.net/bugs/51228
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