Thanks for your bug report.
I've had problems running compiz then going back to xfce and I have to
rerun the xfce window manager to get control. Try this in a terminal:
>xfwm4 &
Sometimes you have to go to Manage Workspaces and bump them back up to 4
workspaces because it always seems to get set back to 1 after this
problem. I've experienced this with Gutsy, so I'm assuming it's still a
problem with Hardy.
Marking as Confirmed.
** Changed in: xfwm4 (Ubuntu)
Status: New => Confirmed
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Cannot move window or click on xfce menu button on panel
https://bugs.launchpad.net/bugs/196226
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