Comment 14 for bug 145604

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Adrian Penisoara (adrian.penisoara) wrote : Re: gnome-terminal resize legend displayed as blocks when Compiz is enabled

I can confirm that creating a new user fixes the problem. I have "flushed" all GNOME configuration files in my home directory and the problem has disappeared.
I guess fixing up some or most of the ~/.gconf/apps/compiz/ hierarchy would resolve the problem.

I have not tried yet Preferences / Advanced Desktop Settings (need compizconfig) / Preferences / Reset to Defaults , although I remember to have used it once in the past.