Public bug reported:

If I use the 'Screen Resolution' preference panel to lower the screen
resolution and then expand it, the desktop does not expand to refill the
available space. This is under 8.04 alpha 6. I have Dell D430 whose
native resolution is 1280x800. If I reduce the resolution to 1024x768
(for the purposes of driving a projector for example) the desktop
shrinks appropriately. If I then change the resolution back to 1280x800,
the resolution changes but the desktop does not expand. The extra space
is black, and I cannot drag windows into it. I can however move the
cursor into the new space, and 'xrandr' reports that both the display
and screen are at 1280x800. Logging out and logging back in of course
restores the desktop to the correct size. I tested this under a 7.10
live cd and it works fine there.

** Affects: ubuntu
     Importance: Undecided
         Status: New

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desktop doesn't expand screen resizes
https://bugs.launchpad.net/bugs/203586
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