This is reproducible on the live desktop from ubuntu-12.04.5.iso running
on a Thinkpad T42 (radeon graphics) - boot the iso, start xterm and the
typed text is immediately corrupted with characters being replaced with
white boxes,  but dragging the window causes the boxes to be replaced by
the expected characters. The problem does not seem to happen under
gnome-terminal. As noted above, switching to Unity 2D seems to fix the
issue.

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

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

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