I am running Kubuntu 7.10 with Intel video card and compiz 
0.6.0-git20071004-0ubuntu2 and I have the same problem.
I read this somewhere on the forums so I made added the following script to 
~/.kde/Autostart
#!/bin/bash
sleep 20
compiz --replace ccp &

Some start the decoration manager like this:
sleep 10
emerald --replace &

But compiz usually starts it automatically is it is the default
decorator.

This mostly solve the issue for me, but sometimes I get a emerald crash and/or 
no decorations at all or even again icon displacement.
So this issue probably has to do something with when compiz is started since a 
longer wait usually helps.

-- 
starting compiz in KDE displaces adept from tray
https://bugs.launchpad.net/bugs/131013
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