I had the same problem & I can no longer reproduce this bug on lucid.

ste...@rosa:~$ lspci -nn | grep VGA
01:00.0 VGA compatible controller [0300]: ATI Technologies Inc Radeon RV250 
[Mobility FireGL 9000] [1002:4c66] (rev 01)

ste...@rosa:~$ uname -a
Linux rosa 2.6.32-21-generic #32-Ubuntu SMP Fri Apr 16 08:10:02 UTC 2010 i686 
GNU/Linux

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[RV250] exa acclerated transparecy artifacts at canvas border [EXA enabled]
https://bugs.launchpad.net/bugs/270690
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