Comment 3 for bug 153205

I can confirm this.
Ubuntu 7.10 (AMD64) + Nvidia GF 8600 GT (nvidia-glx-new driver)

Further, this problem goes away if you install compizconfig-settings-manager and untick "Unredirected Fullscreen windows" in the general options. The downside is that this comes with a performance-penalty especially in OpenGL Games (as that feature would allow Fullscreenapps drawing directly to the screen). Not sure if its a bug that can be fixed, its prolly that you have to choose between slower fullscreen-performance or rendering bugs.