I have the same problem after an update to Hardy.
The desktop effects are disable. Using an ATI card.
** Changed in: displayconfig-gtk (Ubuntu)
Status: Invalid => New
** Summary changed:
- possible problem with compiz
+ [Hardy] gnome-display-properties cannot be launched
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[Hardy] gnome-display-properties cannot be launched
https://bugs.launchpad.net/bugs/140822
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