I can verify this is still a problem on Gutsy. When I reduce the
transparency of a window (alt-scrollwheel), the window contents
correctly blur things underneath, but the window decorations show things
crystal clear.

I'll try to test it with the latest Hardy alpha CD, but since the CD
doesn't enable the NVidia binary drivers by default, I don't know how
much luck I'm going to have.

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compiz blur plugin doesn't blur correctly all the time
https://bugs.launchpad.net/bugs/158376
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