I can confirm this bug.  I performed a version upgrade through package
manager and everything worked fine after the upgrade until I finished my
post-upgrade updates.  Now I cannot enable compiz or the extra effects
settings.  In addition, when I try to access the settings for any of the
compiz effects through CCSM, the option screens all come up blank.  I
have attampted to remove and reinstall all compiz and intel video driver
related packages, with no success.  When I attempt to select the extra
settings in the appearance menu, a "searching for drivers" dialog
appears for a few seconds, then the screen flickers and a box with the
message "cannot enable desktop effects" appears.  When I attempt to
check the "openGL" box in CCSM, I am told I need to enable compositing.

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"Extra" visual effects are reverted to "none" at random or when going into 
compiz settings manager
https://bugs.launchpad.net/bugs/663788
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