I have the same issue here, also using Ubuntu 9.10.
The  only additional information that I can provide is that the screen problems 
disappear once compiz is enabled.
Beside the gnome-system-monitor I've noticed the same problem with Ubuntu One's 
notification popups (for example when it says that client and server versions 
differ) and also in the popups which appear if you change the volume from the 
laptops hard buttons.

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system monitor (ubuntu 9.10) display scrambled
https://bugs.launchpad.net/bugs/491538
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