I have the same bug. You can work a little better with visual effects.
When I turn on the visual effects, window borders back into place, but the 
effects are not enabled.
This is not a solution but it at least some improvement.
Incidentally, your video driver is not fglrx? I think case in it because it is 
not installed correctly in Lucid.

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All windows stuck in top left corner
https://bugs.launchpad.net/bugs/558953
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