Confirming the original bug on Intel Mobile 945GM/GMS, 943/940GML
Express Integrated Graphics Controller (rev 03) with up-to-date Jaunty.
After enabling blur windows blocks appear onscreen. The system remains
unusable after a restart. I recovered by switching to a virtual terminal
after booting (Ctrl+Alt+F1), logging in and editing
~/.gconf/desktop/gnome/applications/window_manager/%gconf.xml

Switch the default from /usr/bin/compiz to /usr/bin/metacity to disable
desktop effects, then reboot. After disabling Blur Windows, I reenable
desktop effects through System > Preferences > Appearance, and
everything is (mostly) back to normal.

I'll test with Karmic in a bit.

-- 
[i945] Compiz crash in i915UpdateTextureState() when enabling blur i945GM/GMS, 
943/940GML
https://bugs.launchpad.net/bugs/391502
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