If the issue happens before X is even loaded, then that means it's not
an X bug.

It sounds like plymouth (or perhaps grub or something else in the
plumbing layer) put the GPU into a bad state, and so when eventually X
came up, it couldn't fire up 3D on it, thus no effects.

You might try booting earlier alphas of natty to see if you can bracket
when it started.

** Package changed: xserver-xorg-video-intel (Ubuntu) => plymouth
(Ubuntu)

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https://bugs.launchpad.net/bugs/713877

Title:
  No desktop effects and no "True Color" color depth

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