Additional Info: I double-checked the md5sum of the .iso image at the
mirror and compared it to the md5sum of the .iso image I downloaded;
they are the same. I burned a new CD anyway and the new Live-CD has the
same problem so I don't think it's a bad CD burn.

I've noticed that the vertical streaks & corrupted pointer are much more
pronounced during the Live-CD boot screen. (plymouth ?) The desktop
seems to accumulate vertical streaks and displaced pixels when windows
are opened, closed and resized (window edges ?) and as the pointer is
moved.

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Ubuntu 10.04 Live-CD: desktop has vertical streaks; pointer corrupted
https://bugs.launchpad.net/bugs/573682
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