I see the problem only if the gkrellm window position is near bottom-right
corner and window decorations are disabled.
I use Hardy with compiz (effects enabled).
When I tried alltray the version of your PPA I was not able to get the gkrellm
window without decorations (althought I set it so),
so (maybe for this reason or maybe because it is fixed already) I do not see
the problem with this version.
** Changed in: alltray (Ubuntu)
Status: Incomplete => New
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Cursor jums when restoring an application from alltray
https://bugs.launchpad.net/bugs/233840
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