That is with running an updated 64bit Gutsy:
compiz:
  Installed: 1:0.5.1+git20070712-0ubuntu4
xorg:
  Installed: 1:7.2-3ubuntu4

-- 
random system freeze when desktop-effects activated
https://bugs.launchpad.net/bugs/115283
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Desktop Bugs, which is a bug contact for compiz in ubuntu.

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