I've made a backup of my data and formatted and reinstalled 12.10. After
a fresh reinstall the problem seems to be solved. But after going into
the software updater and updating all software the issue is back again.
I've narrowed it down to being one of the Compiz updates that's causing
the issue.

Currently I've updated everything except: compiz, compiz-core, compiz-
gnome, compiz-plugins-default, libcompizconfig0, libdecoration0 and nux-
tools

All of these seemed to have something to do with graphics so leaving
them out solves the issue. Any hope that there might be an update to the
culprit in this list that's causing this issue?

Sorry I couldn't narrow it down more, not the most technical buff.

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to nautilus in Ubuntu.
https://bugs.launchpad.net/bugs/1070175

Title:
  Shutter shows black screen with overlay. Dash icons distorted when
  dragging.

Status in “nautilus” package in Ubuntu:
  Confirmed

Bug description:
  After updating to Ubuntu 12.10 whenever I try to use Shutter I just
  see a black screen with my cursor and the shutter overlay info. Also
  noticed that when I drag my icons from the taskbar (left side bar)
  they look a bit distorted. I've tried to deactivate the proprietary
  graphics drivers with no change. This all worked fine on Ubuntu 12.04.
  Any ideas?

  Using ATI HD6370M graphics.

  ProblemType: Bug
  DistroRelease: Ubuntu 12.10
  Package: nautilus 1:3.5.90.really.3.4.2-0ubuntu4
  ProcVersionSignature: Ubuntu 3.5.0-18.29-generic 3.5.7
  Uname: Linux 3.5.0-18-generic i686
  ApportVersion: 2.6.1-0ubuntu4
  Architecture: i386
  Date: Tue Oct 23 07:03:49 2012
  ExecutablePath: /usr/bin/nautilus
  GsettingsChanges: b'org.gnome.nautilus.window-state' b'geometry' 
b"'800x469+65+24'"
  InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Release i386 
(20120423)
  MarkForUpload: True
  SourcePackage: nautilus
  UpgradeStatus: Upgraded to quantal on 2012-10-19 (3 days ago)

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