Looking at the screenshot I bet this is the same bug as
https://bugs.launchpad.net/ubuntu/+source/gnome-session/+bug/1036752

To verify, after logging into the normal Gnome Classic session, check
~/.xsession-errors and see if only the 'core' and 'ccp' compiz plugins
are loaded. If so you can workaround the issue by using compizconfig-
settings-manager to enable a minimal set of plugins, or just use the (no
effects) session until the issue is fixed.

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https://bugs.launchpad.net/bugs/1064898

Title:
  No windows management woth Gnome after Upgrade to Quantal

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