I got the same behaviour as originally described. (Ubuntu 7.04; No 3d desktop)
Applications lose their "min, max, close" buttons and the title bar.
Desktop is not showing icons or responsive.
ALT-TAB doesn't work, only one application can have focus, and it covers the 
Applications menu bar.

It's something that goes wrong in gnome-session I guess.

Opening gnome-terminal doesn't do/show up anything.  Opening "Root-
terminal" works, I then type gnome-session, and everything "starts
up/comes back to life".

Logging out and back in, (even ctrl-alt-backspace to kill X(sic)), and
it still does the same thing. I will try deleting the gnome session file
as described above.

I attached my session file.


** Attachment added: "My Gnome session file after running "gnome-session" to 
fix the desktop-manager."
   http://launchpadlibrarian.net/9046712/session

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Top and Bottom Screen Panels Stopped Working Properly in Ubuntu Feisty
https://bugs.launchpad.net/bugs/109760
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