Having the same issue here with Xubuntu 9.10 on a Thinkpad T42 with
graphics card ATI Technologies Inc Radeon Mobility M7 LW [Radeon
Mobility 7500]. I don't believe the issue is caused by the graphics
card. This issue affects gnome-system-monitor and the notifications
displayed by notify-osd. Had to replace notify-osd with xfce4-notifyd to
view the notifications.

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gnome-system-monitor shows blur window in Xubuntu Karmic.
https://bugs.launchpad.net/bugs/474134
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