Similar problem, If I turn on Desktop-Effects in Feisty then open a terminal I 
get the screen come up but no text.
If the terminal was already open then text displays as normal.
Also trying to switch tabs in Firefox with Desktop Effects on doesn't change 
the display on screen.
I am on a HP Pavilion zd8010us laptop with an ATI x600 video card, 1Gb Mem and 
3GHz Intel Hyperthreading Processor.

** Attachment added: "Terminal Windows"
   http://librarian.launchpad.net/6608882/Screenshot.png

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With compiz running in feisty, text doesn't display in Run Application dialog
https://launchpad.net/bugs/82806

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