I can confirm this bug using xserver-xorg-video-intel 2:2.1.1-0ubuntu4
in Gutsy. See attached screenshot of the problem.
** Changed in: compiz (Ubuntu)
Status: New => Confirmed
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Gutsy: Switching to fullscreen in Totem and having wobbly windows enabled
produces a glitch
https://bugs.launchpad.net/bugs/145725
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