I'm still seeing this issue on karmic koala 9.10 (just upgraded today).
Using latest nvidia restricted drivers on a dual monitor setup.

The same workaround of switching to metacity still works. But I was
really looking forward (hoping!) to be able to use compiz again :-)

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Compiz / vnc screen refresh with nvidia-restricted driver/VirtualBox/ATI fglrx 
driver
https://bugs.launchpad.net/bugs/353126
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