Updated my 7.10 system with all updates as of 8:30 CST 10/8.  My system also 
uses the xorg intel driver and is experiencing a similar issue with maximizing 
windows.  Starting an application that normally runs full screen results in the 
app appearing to be opened "non-full screen", although the top-right window 
buttons indicate it should be full screen.  Clicking the "restore window" 
middle-button will cause the window to change position on the screen.  At this 
point the middle button is a "maximize window" button.  Pressing it will make 
the window appear full screen for real.    It appears that when initially 
started, the window is not full-screen but the system thinks it is.  Telling 
the system to un-maximize the window and then maximizing it again fixes the 
issue.  Alternatively, if the full screen app is opened, taking up only some of 
the screen and centered in the top-left corner, if it is dragged to the middle 
of the screen, it appears to be come unmaximzed and the middle button changes 
to "maximize window".  Pushing that button at this point will cause the app to 
fully maximize.
My system has this issue with Firefox and  gnome-terminal.  For OpenOffice 2.3, 
the window stays un-maximized no matter how many times the maximize button is 
pressed.
This behavior does not occur with Metacity - only Compiz.

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Compiz maximizing unreliable
https://bugs.launchpad.net/bugs/145843
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