There are now more reports of the same issue on other people's machines.
I do not believe this is simply a misconfiguration on my part, and this
issue still needs to be addressed.

I did, however find the answer to almost make this work for me at
https://answers.launchpad.net/ubuntu/+question/67975 .  I say almost,
though, because the right side of my desktop background is now messed
up.  I will try to attach a scaled-down screenshot.

(Again,) This still needs to be fixed so the average dude can enjoy
effects GNU/Linux properly working.

Integrated video hardware in Asus M2A-VM with (according to manual) ATI Radeon 
X1250-based graphics
Both DVI-D and RGB are in use for dual-monitor set-up
256 MB shared vram
The driver is radeon.

** Attachment added: "Screenshot.png"
   http://launchpadlibrarian.net/25981717/Screenshot.png

-- 
[jaunty] Desktop effects could not be enabled
https://bugs.launchpad.net/bugs/363967
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