This bug has been fixed:
"cornwall@cornwall-desktop:~$ compiz
compiz (core) - Error: Screen 0 on display ":0" already has a window manager;
try using the --replace option to replace the current window manager."
** Changed in: compiz (Ubuntu)
Status: Triaged => Fix Released
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https://bugs.launchpad.net/bugs/367801
Title:
Typing 'compiz' in terminal locks up system
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