This works fine for me in Karmic (and I think it did in Jaunty as well)
Is this still an issue for your?
** Changed in: xfwm4 (Ubuntu)
Status: New => Incomplete
** Changed in: xfwm4 (Ubuntu)
Assignee: (unassigned) => Rolf Leggewie (r0lf)
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xfwm4 does not work with gnome
https://bugs.launchpad.net/bugs/305026
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