Public bug reported:

Binary package hint: gnome-terminal

Ubuntu 7.10
Latest updates, Compiz enabled, with wobbly windows and transparency on window 
move

I can set the gnome-terminal background to be transparent, which works fine, 
but when I move the window, it keeps the background from where I picked it up 
until I drop it.
Now, the transparency for the window border works fine while I'm moving it, but 
inside the terminal, it stays the same.  This is why I think it's in the 
terminal app...

** Affects: gnome-terminal (Ubuntu)
     Importance: Undecided
         Status: New

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Transparent background freezes on window move
https://bugs.launchpad.net/bugs/195299
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