Follow-up: have upgraded to 10.04, and the problem is still present.  I can 
select the 'Visual Effects' tab from System - Preferences - Appearance and 
change from 'None' to 'Normal' but shortly afterwards, the system hangs.

Oddly, the drop-down menus are not transparent this time.

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Displaying a 'visual effect' causes system to hang on 9.10
https://bugs.launchpad.net/bugs/469832
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