Sorry I overlooked your questions. It does work with Metacity compositing enabled. I haven't had a chance to install an older version of Compiz yet to see if that works. I was inclined to agree with your nvidia<->xorg hypothesis, but I hope the changes in Compiz from 0.7.8(Intrepid) to 0.8.2(Jaunty) are taken into consideration as well.
Travis:
Sorry I overlooked your questions. It does work with Metacity compositing enabled. I haven't had a chance to install an older version of Compiz yet to see if that works. I was inclined to agree with your nvidia<->xorg hypothesis, but I hope the changes in Compiz from 0.7.8(Intrepid) to 0.8.2(Jaunty) are taken into consideration as well.