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73416ba
(Get the code!)
I'm experiencing this same issue and the video attached by Ramkumar shows it perfectly. It seems limited to xterm (all the other applications I've tried, including gnome-terminal behave normally). I'm also running 11.04 on 2.6.38-8-generic, however, I'm on x86 running legacy Gnome with an nvidia 4200M/PCI/SSE2 (275.19).