This time, sorry for my impatience! Probably the local servers (in
Finland) did not have the proposed fix available until a moment ago. Now
I have Compiz 1:0.7.8-0ubuntu4.1 and the behaviour is just as Jerry
described three hours ago.

Thanks!

I still hope the next fix makes it possible to enable the effects,
because I really appreciate true terminal transparency (it comes handy
in some situations for us "CLI lovers").

-- 
Intrepid Compiz hangs on login for i830MG and i845 video cards
https://bugs.launchpad.net/bugs/259385
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