You seem to have a mix of both desktops and viewports. Install
compizconfig-settings-manager, run it from System->Preferences->Advanced
Desktop Effects Settings, go to General Options, click the Desktop Size
tab, and change Number of Desktops to 0.
Mixing desktops and viewports is not supported.
** Changed in: compiz (Ubuntu)
Status: Incomplete => Invalid
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[Gutsy] Compiz 1:0.6.0+git20071008-Oubuntu1 crashes cube and Gnome Desktop
https://bugs.launchpad.net/bugs/151683
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