I have the same problem in 8.10 beta.  I use only 4 workspaces (2x2).
The workaround mentioned above also does work for me.

The computer I am using does not use the ATI Radeon drivers so I am
assuming that is not the cause.  Also I did not move the bars around so
that is unlikely to be it as well.

One thing that I did do prior to starting compiz initially was I renamed
the workspaces.  It is probably unrelated however compiz did not keep
the names instead refering to them as "Desk 1" through "Desk 4"

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Workspace switcher preview compressed after increasing Visual Effects
https://bugs.launchpad.net/bugs/249650
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