Same issue here 
 uname -rv
3.5.0-36-generic #57~precise1-Ubuntu SMP Thu Jun 20 15:22:35 UTC 2013
cat /etc/issue
Ubuntu 12.04.2 LTS \n \l
nvidia-173-updates 173-14-36-0ubuntu0.0.1
nVidia 6200 AGP8x
01:00.0 VGA compatible controller: NVIDIA Corporation NV44A [GeForce 6200] (rev 
a1) (prog-if 00 [VGA controller])
        Flags: bus master, 66MHz, medium devsel, latency 248, IRQ 16
        Memory at cf000000 (32-bit, non-prefetchable) [size=16M]
        Memory at a0000000 (32-bit, prefetchable) [size=512M]
        Memory at ce000000 (32-bit, non-prefetchable) [size=16M]
        [virtual] Expansion ROM at cdfe0000 [disabled] [size=128K]
        Capabilities: [60] Power Management version 2
        Capabilities: [44] AGP version 3.0
        Kernel driver in use: nvidia
        Kernel modules: nvidia_173_updates, nouveau, nvidiafb

Workaround: always login classic shell no-effects

I don't know who are the devs of vino, but they could have a look to the 
realvnc server I use for years in Windows, it has an 3 desktop options that 
apply "While connected": 
* Remove wallpaper
* Remove background pattern
* Disable user interface effects
beside the "Capture Method" options
* Poll for changes to the desktop
* Use  VNC hooks to track changes (default)
    §Poll console windows for updates (default)
* Use alpha-blended windows (default)

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to fglrx-installer in Ubuntu.
https://bugs.launchpad.net/bugs/772873

Title:
  Vino does not work with compositing

Status in “fglrx-installer” package in Ubuntu:
  Triaged
Status in “fglrx-installer” source package in Natty:
  Won't Fix
Status in “fglrx-installer” source package in Oneiric:
  Won't Fix
Status in “fglrx-installer” source package in Precise:
  Triaged

Bug description:
  Binary package hint: vino

  Vino, the built in VNC server in Ubuntu, has had a problem for many
  releases where it won't update the display when connected remotely if
  compositing is enabled.

  I honestly don't know why it was shipped with this version since
  compositing is now required and enabled by default, but Vino doesn't
  work if compositing is enabled.

  After upgrading to Natty there is no user-facing way to disable
  compositing, so the built-in remote control application is now
  completely useless.

  This is a core functionality of a desktop operating system and it has
  been broken in Ubuntu for several major releases ( see bug 353126
  which was opened on 2009-4-1).

  If if it's not a core functionality to everyone and that's just my
  opinion, it doesn't make any sense to ship a desktop OS with a broken
  remote control service. I don't know of any other desktop OS that
  ships with a remote desktop functionality that is completely broken
  out of the box.

  ProblemType: Bug
  DistroRelease: Ubuntu 11.04
  Package: vino 2.32.1-0ubuntu2
  ProcVersionSignature: Ubuntu 2.6.38-8.42-generic 2.6.38.2
  Uname: Linux 2.6.38-8-generic x86_64
  NonfreeKernelModules: fglrx
  Architecture: amd64
  Date: Thu Apr 28 19:28:50 2011
  InstallationMedia: Ubuntu 10.10 "Maverick Meerkat" - Release amd64 (20101007)
  ProcEnviron:
   LANGUAGE=en_US:en
   LANG=en_US.UTF-8
   SHELL=/bin/bash
  SourcePackage: vino
  UpgradeStatus: Upgraded to natty on 2011-04-29 (0 days ago)

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