I fixed this problem (by stumbling around).

Since I have other, older distributions working with Compiz, I opened
ccsm from one of them and compared them to the 12.04 upgrade ccsm.

Strangely, after enabling Windows decorations, move, and re·size the
problems stated is this question were solved.

By setting others from the older ccsm, I got a rotating cube.

Alas, there are no more 3D windows

Attached are screenshots of ccsm for 10.10 distribution

** Attachment added: "Screenshot-CompizConfig Settings Manager-upper.png"
   
https://bugs.launchpad.net/ubuntu/+source/update-manager/+bug/994893/+attachment/3131863/+files/Screenshot-CompizConfig%20Settings%20Manager-upper.png

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https://bugs.launchpad.net/bugs/994893

Title:
  No window border/titlebar/control item after release upgrade from
  11.10 > 12.04

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