I have experienced the same problem with a fresh installation of Ubuntu 11.04
natty.
I have fixed it with the following:
*************
Workaround: Edit /usr/share/themes/Ambiance/metacity-1/metacity-theme-1.xml.
Set the following values in frame_geometry_normal as desired:
<distance name="left_width" value="3"/>
<distance name="right_width" value="3"/>
<distance name="bottom_height" value="3"/>
*************
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https://bugs.launchpad.net/bugs/160311
Title:
Resizing windows by grabbing window borders is difficult
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