I have the same issue after trying to disable grid via compiz settings
manager.  It isn't system-wide corruption as login using another user
a/c is ok.  Login using the problematic user a/c is also ok with Ubuntu
2D.  Appears that it can be solved by removing the following 2 lines
from the file ~/.config/compiz-1/compizconfig/config:

> [general_ubuntu]
> profile = 

I would presume that the 2 lines were added by the compiz settings
manager while checking the Preference option.

Actually, hung desktop also happens if tweaking via gconf-editor for the
compiz settings.  However, removing unwanted directories from
~/.gconf/apps/compiz-1/plugins solves my problems.

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https://bugs.launchpad.net/bugs/887065

Title:
  Conpiz Config Settings manager on 11.10

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