I see this same problem on with Oneiric on a Dell e6500 laptop with
nVidia Quadro NVS 160M1 graphics. I had no problems in Natty. It goes
away with Unity 2D. It renders terminal and emacs almost unusable.

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https://bugs.launchpad.net/bugs/861268

Title:
  text corruption in terminals (xterm, urxvt) and emacs

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