Same in Ubuntu 8.04, Compiz 1:0.7.4-0ubuntu7.

Go to System -> Preferences -> Appearance.  Click on Visual Effects tab.
Set visual effects to Normal.

The define a keyboard shortcut using either the left or the right Alt
key.  Shortcut will not work.

Go back to Visual Effects and set it to None and shortcut will work
again.

-- 
shortcuts with alt key do not work with compiz
https://bugs.launchpad.net/bugs/480588
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