Here's my experience. Launching desktop-effects from the command line
cures the problem for me.

1. When enabling desktop-effects from System > Preferences, I got no
decorations.

2. I installed gnome-compiz-manager, still no decorations.

3. I uninstalled everything compiz-related (but not XGL) using synaptic
(using "complete removal").

4. I re-installed desktop-effects and dependent packages

5. Still no decorations when enabling desktop-effects from System >
Preferences

6. When launching desktop-effects from command line, I get this (see
below) BUT, window decorations now appear:

[EMAIL PROTECTED]:~$ desktop-effects
nvidia restricted driver is already enabled
gtk-window-decorator: Could not acquire decoration manager selection on screen 
0 display ":0.0"

7. Rebooted my system, all desktop effects working fine and continue to
be so.

-- 
desktop effects remove top bar on all my windows and make windows unmovable
https://bugs.launchpad.net/bugs/102368
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