I'm not sure about the driver but i have a nvidia 8500. However i KNOW
this has nothing to do with the drivers because:

1. I have seen this bug on every linux computer with turned off compiz and 
stuff.
2. Opengl applications work perfectly.
3. This is the most obvious proof. There is another bug when you right click an 
icon and select "Stretch Icon" and stretch it in weird ways. The stretching is 
drawn with no flickering and with correct alpha channel. The bug is that if you 
stretch it in weird ways the icon will start moving as if you were dragging it 
and is still is drawn correctly.

To fix the flickering and the alpha channel bug all you have to do is to
use the rendering code used by the "Stretch Icon" feature and apply it
on icon dragging.

** Attachment added: "flickering.png"
   http://launchpadlibrarian.net/37788327/flickering.png

-- 
Icons on desktop are being drawn with flickering and alpha-channel ignorance 
when moved around
https://bugs.launchpad.net/bugs/403997
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