Font corruption inside xterm screen

[latrom]

Hello. The problem manifests itself with the current configuration. Fonts get corrupted and xterm is unusable.

ProblemType: Bug
DistroRelease: Ubuntu 11.10
Package: xorg 1:7.6+7ubuntu6
ProcVersionSignature: Ubuntu 3.0.0-9.15-generic 3.0.3
Uname: Linux 3.0.0-9-generic x86_64
NonfreeKernelModules: wl
Architecture: amd64
CompizPlugins: [core,bailer,detection,composite,opengl,decor,mousepoll,vpswitch,regex,animation,snap,expo,move,compiztoolbox,place,grid,imgpng,gnomecompat,wall,ezoom,workarounds,resize,fade,unitymtgrabhandles,scale,session,unityshell]
CompositorRunning: compiz
Date: Sat Sep 3 12:32:29 2011
DistUpgraded: Fresh install
DistroCodename: oneiric
DistroVariant: ubuntu
DkmsStatus:
 bcmwl, 5.100.82.38+bdcom, 3.0.0-7-generic, x86_64: installed
 bcmwl, 5.100.82.38+bdcom, 3.0.0-9-generic, x86_64: installed
ExtraDebuggingInterest: Yes, whatever it takes to get this fixed in Ubuntu
GraphicsCard:
 Intel Corporation N10 Family Integrated Graphics Controller [8086:a011] (rev 02) (prog-if 00 [VGA controller])
   Subsystem: ASUSTeK Computer Inc. Device [1043:83ac]
   Subsystem: ASUSTeK Computer Inc. Device [1043:83ac]
InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Alpha amd64 (20110803.1)
MachineType: ASUSTeK Computer INC. 1015PEM
ProcEnviron:
 PATH=(custom, no user)
 LANG=fi_FI.UTF-8
 SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/@/boot/vmlinuz-3.0.0-9-generic root=/dev/sda1 ro rootflags=subvol=@ quiet splash vt.handoff=7
SourcePackage: xorg
UpgradeStatus: No upgrade log present (probably fresh install)
dmi.bios.date: 10/27/2010
dmi.bios.vendor: American Megatrends Inc.
dmi.bios.version: 0901
dmi.board.asset.tag: To Be Filled By O.E.M.
dmi.board.name: 1015PE
dmi.board.vendor: ASUSTeK Computer INC.
dmi.board.version: x.xx
dmi.chassis.asset.tag: 0x00000000
dmi.chassis.type: 10
dmi.chassis.vendor: ASUSTeK Computer INC.
dmi.chassis.version: x.x
dmi.modalias: dmi:bvnAmericanMegatrendsInc.:bvr0901:bd10/27/2010:svnASUSTeKComputerINC.:pn1015PEM:pvrx.x:rvnASUSTeKComputerINC.:rn1015PE:rvrx.xx:cvnASUSTeKComputerINC.:ct10:cvrx.x:
dmi.product.name: 1015PEM
dmi.product.version: x.x
dmi.sys.vendor: ASUSTeK Computer INC.
version.compiz: compiz 1:0.9.5.92+bzr2791-0ubuntu1
version.ia32-libs: ia32-libs N/A
version.libdrm2: libdrm2 2.4.26-1ubuntu1
version.libgl1-mesa-dri: libgl1-mesa-dri 7.11-0ubuntu3
version.libgl1-mesa-dri-experimental: libgl1-mesa-dri-experimental N/A
version.libgl1-mesa-glx: libgl1-mesa-glx 7.11-0ubuntu3
version.xserver-xorg: xserver-xorg 1:7.6+7ubuntu6
version.xserver-xorg-input-evdev: xserver-xorg-input-evdev 1:2.6.0-1ubuntu13
version.xserver-xorg-video-ati: xserver-xorg-video-ati 1:6.14.99~git20110811.g93fc084-0ubuntu1
version.xserver-xorg-video-intel: xserver-xorg-video-intel 2:2.15.901-1ubuntu2
version.xserver-xorg-video-nouveau: xserver-xorg-video-nouveau 1:0.0.16+git20110411+8378443-1