Same here. Using Lubuntu i386 and the latest nvidia-drivers from the
repository (270.41.06). I suspect this is an issue with the latest
nvidia driver. But since Ubuntu never updates restricted drivers, you'll
have to wait until 11.10 for a new one if you want to use the repository
or uninstall it and use the driver from nvidia's site when a new version
rolls around.

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https://bugs.launchpad.net/bugs/743157

Title:
  LXterminal makes black rectangle in upper left position

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