It also happens on ubuntu 64 bit (ati mobiliy radeon x1600). Same driver and 
compiz configuration as Rune.
I got it working by running compiz with --loose-binding. Unfortunately I didn't 
find a way to pass command line options to compiz when it starts up so I had to 
hack it a little:

sudo bash
cd /usr/bin
mv compiz compiz.binary
vi compiz
#!/bin/bash

exec /usr/bin/compiz.binary --loose-binding $*
:wq
chmod 755 compiz
ln /usr/bin/compiz-decorator /usr/bin/compiz.binary-decorator
exit

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https://bugs.launchpad.net/bugs/559183

Title:
  Windows flicker with a thick white border when resized

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