This issue occurs when an application window has been snapped to the left or the right to fill half the screen. If you try dragging the window away and it releases the snapped window the window ends up 3-4 inches below the mouse cursor. The mouse is then in the middle of nowhere dragging a window way below it.
This happens when the windo has been snapped using the mouse to drag or using the shortcut keys ctrl-alt-a or 6. It also occurs when either using the apllication menu bar to drag or when using the Alt-left mouse click feature to drag. It occurs in both 64bit and 32bit versions.
I have tested this issue on my current main Dell XPS laptop, installed with 64bit 12.04 (nouveau driver) and this occurs in a Virtual machine running in virtualbox with software 3d rendering.
So the issue is not related to platform or graphics driver. It's easil reproduceable.
Please see my atattached video of this issue in 32bit virtual machine
ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: compiz 1:0.9.7.0~bzr2995-0ubuntu4
ProcVersionSignature: Ubuntu 3.2.0-17.26-generic-pae 3.2.6
Uname: Linux 3.2.0-17-generic-pae i686
.tmp.unity.support.test.0:
ApportVersion: 1.92-0ubuntu1
Architecture: i386
CompizPlugins: [core,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: Tue Feb 21 12:00:43 2012
DistUpgraded: Fresh install
DistroCodename: precise
DistroVariant: ubuntu
DkmsStatus: virtualbox-guest, 4.1.8, 3.2.0-17-generic-pae, i686: installed
GraphicsCard: InnoTek Systemberatung GmbH VirtualBox Graphics Adapter [80ee:beef] (prog-if 00 [VGA controller])
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Alpha i386 (20120220)
Lsusb:
Bus 001 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 001 Device 002: ID 80ee:0021 VirtualBox USB Tablet
MachineType: innotek GmbH VirtualBox
PackageArchitecture: all
ProcEnviron:
LANGUAGE=en_ZA:en
TERM=xterm
PATH=(custom, no user)
LANG=en_ZA.UTF-8
SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.2.0-17-generic-pae root=UUID=a0a1f314-d62e-4234-8e3b-b8f22ad833c0 ro quiet splash vt.handoff=7
Renderer: Software
SourcePackage: compiz
UpgradeStatus: No upgrade log present (probably fresh install)
dmi.bios.date: 12/01/2006
dmi.bios.vendor: innotek GmbH
dmi.bios.version: VirtualBox
dmi.modalias: dmi:bvninnotekGmbH:bvrVirtualBox:bd12/01/2006:svninnotekGmbH:pnVirtualBox:pvr1.2:
dmi.product.name: VirtualBox
dmi.product.version: 1.2
dmi.sys.vendor: innotek GmbH
version.compiz: compiz 1:0.9.7.0~bzr2995-0ubuntu4
version.libdrm2: libdrm2 2.4.30-1ubuntu1
version.libgl1-mesa-dri: libgl1-mesa-dri 8.0~rc2-0ubuntu5
version.libgl1-mesa-dri-experimental: libgl1-mesa-dri-experimental N/A
version.libgl1-mesa-glx: libgl1-mesa-glx 8.0~rc2-0ubuntu5
version.xserver-xorg-core: xserver-xorg-core 2:1.11.4-0ubuntu3
version.xserver-xorg-input-evdev: xserver-xorg-input-evdev 1:2.6.99.901+git20120126-0ubuntu2
version.xserver-xorg-video-ati: xserver-xorg-video-ati 1:6.14.99~git20111219.aacbd629-0ubuntu2
version.xserver-xorg-video-intel: xserver-xorg-video-intel 2:2.17.0-1ubuntu4
version.xserver-xorg-video-nouveau: xserver-xorg-video-nouveau 1:0.0.16+git20111201+b5534a1-1build2
Note this does not happen when the application has been snapped into any other position except half screen left or right. Also shown in video