I can reproduce at will in gutsy, reopening. 
I use the radeon driver, my card is a Radeon Mobility 7500, with only 32MB RAM. 
I suspect this has something to do with it, as in the standard resolution of my 
laptop (1400x1050) I see this kind of corruption. Maybe the textures are too 
big to fit in video RAM? If I set the resolution to 1024x768 (in xorg.conf), I 
am able to use compiz without corruption. 

** Changed in: compiz (Ubuntu)
       Status: Rejected => Confirmed

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Display corruption when launching compiz
https://bugs.launchpad.net/bugs/31619
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