This issue appears to be resolved in Karmic Alpha 2.

There is another bug that needs to be resolved. Desktop doesn't extend
across both of my 1440x900 monitors. So half of one monitor is unusable.
I'm guessing the desktop size is limited to 2048. I'll file a bug when /
if I have time.

Paul

-- 
[GM45,Intrepid] Screen corruption when enabling/disabling external monitor with 
compiz
https://bugs.launchpad.net/bugs/316000
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