I'm experiencing this same issue and the video attached by Ramkumar
shows it perfectly. It seems limited to xterm (all the other
applications I've tried, including gnome-terminal behave normally). I'm
also running 11.04 on 2.6.38-8-generic, however, I'm on x86 running
legacy Gnome with an nvidia 4200M/PCI/SSE2 (275.19).

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https://bugs.launchpad.net/bugs/799112

Title:
  xterm window keeps moving on maximizing

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