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I found this reported twice before but both were closed as invalid.
However, I do believe this is an issue; also in Hardy.
Here is how to reproduce it on a machine with nvidia graphics:
Install Hardy alpha2 desktop x86 from CD
Boot into new OS
Allow all package updates to apply
Install nvidia restricted driver
Turn on desktop effects through appearance prefs. dialog
At this point, the window borders disappear. Two solutions have been
proposed, but neither work for me. 1) Put "Option "AddARGBGLXVisuals"
"True"" into Device section of xorg.conf and 2) "sudo nvidia-xconfig
--add-argb-glx-visuals"
** Affects: gnome-control-center (Ubuntu)
Importance: Undecided
Status: Fix Released
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window borders disappear with enhanced visual effects turned on
https://bugs.edge.launchpad.net/bugs/179773
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