Upgraded to Ubuntu 11.10 last month. And i intended to post this back then. But of-course time got the better of me. I kept thinking yesterday was tomorrow. Anyway, lets get on to the issue.
Issue: Transparency in terminal shows the desktop background rather than the window underneath.
The image above was found in a post by SoulMazer in UbuntuForums.
What i did: Endless Googling for it and looking around in Ubuntu forums is what i did. I even asked the tech guru here for a solution. Tech guru seemed to think it was the Nvidia driver problem. I didnt know where to get it from, so left if for a week. Ubuntu forums kept telling me its the compiz problem.
Solution: Paste in terminal: gconftool-2 -s ‘/apps/metacity/general/compositing_manager’ –type bool true
What you have done is enable composting in metacity. This worked for me after the first restart. Hope it does for you too!