I would just like to confirm that I have exactly the same problem.
I can get the Workspace on a cube to work again by following the above steps 
(I've been doing the exact same procedure for a while).
I have an Acer Aspire 9500 Laptop with an ATI Mobility Radeon X700 Graphics 
Card.
I am using Feisty Stable and running 0.7.1-0ubuntu4 for desktop-effects

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Desktop-effect does not enable cube
https://bugs.launchpad.net/bugs/89786
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