[Ubuntu 12.10] Docky 2.1.4 ghosting effect on screen random bars

[bond17_007]

Hi,
I just updated my machine to 12.10 and noticed that when docky is running i am seeing some random ghosting effect on screen. I see soome color strip about 3 inches from the bottom of the screen, when docky is on, i see some ghosting effect around the edges also.
It use to run with no issues on 12.04.

I ran docky on debug mode and I see the following:

[Debug 10:58:52.572] [DrawingService] at Gdk.Pixbuf..ctor (System.String filename, Int32 width, Int32 height, Boolean preserve_aspect_ratio) [0x00000] in <filename unknown>:0
  at Docky.Services.DrawingService.IconFromFile (System.String name, Int32 width, Int32 height) [0x00000] in <filename unknown>:0
[Info 10:58:52.573] [DrawingService] Could not find '/usr/share/pithos/media/icon.svg', using fallback of 'extension'.
[Info 10:58:52.582] [DrawingService] Could not find 'tomboy', using fallback of 'extension'.
[Warn 10:58:52.598] [DrawingService] Error loading icon from file '/usr/share/pixmaps/workrave/workrave.xpm': Failed to open file '/usr/share/pixmaps/workrave/workrave.xpm': No such file or directory
[Debug 10:58:52.598] [DrawingService] at Gdk.Pixbuf..ctor (System.String filename, Int32 width, Int32 height, Boolean preserve_aspect_ratio) [0x00000] in <filename unknown>:0
  at Docky.Services.DrawingService.IconFromFile (System.String name, Int32 width, Int32 height) [0x00000] in <filename unknown>:0
[Info 10:58:52.598] [DrawingService] Could not find '/usr/share/pixmaps/workrave/workrave.xpm', using fallback of 'extension'.