It works after making the desktop use nautilus (I think that's what did it) BUT 
it used to work properly before with xfdesktop so it still is a bug technically 
I would say.

> From: ow...@bugs.debian.org
> To: denb...@live.com
> Subject: Bug#654952: Info received (Bug#654952: gnome-terminal: Transparent 
> background stopped working in a recent update in Wheezy/Testing)
> Date: Sat, 7 Jan 2012 20:57:05 +0000
> 
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> Your message has been sent to the package maintainer(s):
>  Guilherme de S. Pastore <gpast...@debian.org>
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> 654952: http://bugs.debian.org/cgi-bin/bugreport.cgi?bug=654952
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