Top area of my display looks corrupted

[Beowulf]

When select 'Gnome' session in display manager and login, the top of my screen where gnome panel lives is located looks corrupted, see the screenshot.

ProblemType: Bug
DistroRelease: Ubuntu 11.10
Package: xorg 1:7.6+7ubuntu7
ProcVersionSignature: Ubuntu 3.0.0-12.20-generic 3.0.4
Uname: Linux 3.0.0-12-generic x86_64
NonfreeKernelModules: wl fglrx
.tmp.unity.support.test.0:

ApportVersion: 1.23-0ubuntu4
Architecture: amd64
CompizPlugins: [core,bailer,detection,composite,opengl,compiztoolbox,decor,resize,vpswitch,mousepoll,regex,wallpaper,place,obs,imgpng,gnomecompat,session,dbus,grid,animation,move,snap,wall,fade,winrules,unitymtgrabhandles,expo,workarounds,scale,ezoom,unityshell]
CompositorRunning: None
Date: Wed Nov 9 21:05:02 2011
DistUpgraded: Log time: 2011-10-15 03:44:18.878693
DistroCodename: oneiric
DistroVariant: ubuntu
DkmsStatus:
 bcmwl, 5.100.82.38+bdcom, 2.6.38-11-generic, x86_64: installed
 bcmwl, 5.100.82.38+bdcom, 3.0.0-12-generic, x86_64: installed
 fglrx, 8.881, 3.0.0-12-generic, x86_64: installed
 virtualbox, 4.1.2, 2.6.38-11-generic, x86_64: installed
 virtualbox, 4.1.2, 3.0.0-12-generic, x86_64: installed
ExtraDebuggingInterest: Yes, whatever it takes to get this fixed in Ubuntu
GraphicsCard:
 ATI Technologies Inc M96 [Mobility Radeon HD 4650] [1002:9480] (prog-if 00 [VGA controller])
   Subsystem: Hewlett-Packard Company Device [103c:3624]
InstallationMedia: Ubuntu 10.10 "Maverick Meerkat" - Release amd64 (20101007)
JockeyStatus:
 xorg:fglrx_updates - ATI/AMD proprietary FGLRX graphics driver (post-release updates) (Proprietary, Disabled, Not in use)
 kmod:wl - Broadcom STA wireless driver (Proprietary, Enabled, In use) [auto-install]
 xorg:fglrx - ATI/AMD proprietary FGLRX graphics driver (Proprietary, Enabled, In use)
MachineType: Hewlett-Packard HP Pavilion dv7 Notebook PC
ProcEnviron:
 PATH=(custom, user)
 LANG=en_US.UTF-8
 SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.0.0-12-generic root=UUID=fdf6ebc4-8988-450e-9564-5a09d9a11ec9 ro quiet splash vt.handoff=7
SourcePackage: xorg
Symptom: display
UpgradeStatus: Upgraded to oneiric on 2011-10-15 (25 days ago)
dmi.bios.date: 08/31/2009
dmi.bios.vendor: Hewlett-Packard
dmi.bios.version: F.33
dmi.board.asset.tag: Base Board Asset Tag
dmi.board.name: 3624
dmi.board.vendor: Quanta
dmi.board.version: 18.42
dmi.chassis.type: 10
dmi.chassis.vendor: Quanta
dmi.chassis.version: N/A
dmi.modalias: dmi:bvnHewlett-Packard:bvrF.33:bd08/31/2009:svnHewlett-Packard:pnHPPaviliondv7NotebookPC:pvrRev1:rvnQuanta:rn3624:rvr18.42:cvnQuanta:ct10:cvrN/A:
dmi.product.name: HP Pavilion dv7 Notebook PC
dmi.product.version: Rev 1
dmi.sys.vendor: Hewlett-Packard
version.compiz: compiz 1:0.9.6+bzr20110929-0ubuntu5
version.fglrx-installer: fglrx-installer N/A
version.ia32-libs: ia32-libs 20090808ubuntu26
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+7ubuntu7
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

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.