I have same problem.  If I enable desktop effects, always window borders
disappear (including window title, close, minimize and maximize
buttons).  Terminal window also has a problem, because I cannot view
command line indicator, only a white "patch" (because I cannot see
border) without any text inside.  If I deactivate desktop effects, all
window borders appear.

Computer:
AMD Athlon XP 2000+
768 MB RAM
Asus A7V8X motherboard
Nvidia geforce 440MX AGP 8x (NV18) with nvidia 9631 restricted driver
DistroRelease: Ubuntu 7.04

I attached a screen capture with the issue.

** Attachment added: "Image: Window border disappear with desktop effects 
enabled"
   http://librarian.launchpad.net/7569367/Border_issue.png

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title bar disappear when activating desktop effects
https://bugs.launchpad.net/bugs/108265
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