Thanks for your bugreport!
The windows border dissapearing when the Windows Effects are activated means
that the software controlling the windows effects has crashed.
This is not uncommon as these windows effects were released as a technology
preview when feisty was out, and it was not considered stable. If I remember
correctly, a warning was written on the windows effect window.
So you can either disable the windows effects, or upgrade to Ubuntu gutsy.
** Changed in: compiz (Ubuntu)
Status: New => Invalid
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Desktop effects enabled no borders on windows
https://bugs.launchpad.net/bugs/186279
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