After some searching I found a post specifically talking about compiz on
the i915... Add this option to your Xorg.conf in the Device section for
your Intel video card:

 Option "XAANoOffscreenPixmaps"

Seems to have fixed issues for me - terminal windows now draw properly,
password fields now display stars as expected, gksu works properly, etc.

I'll give it a bit more time before I call this the definite fix as some
of the above problems didn't happen with me initially under Herd 5.

-- 
when desktop-effects enabled, apps requiring sudo permissions not showingup 
correctly
https://launchpad.net/bugs/90299

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