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[Adam Lyall <magicmyth@xxxxxxxxxxxxx>]

I'm seeing this same issue on multiple Intel IGP chips in different laptops. GMA 950, x3100, and a GMA 4500M. I also have a system with a ATI R300 running Ubuntu Karmic with the 2.6.32 kernel from ppa using KMS and Xorg-updates which does not exhibit this issue so it seems specific to the Intel cards. Not sure if the Nvidia issue is the same as I believe loose-binding was intended to always be used with the Nvidia blob anyway.
I first noticed this issue during Jaunty when I moved to the Linux kernel 2.6.31 (from kernel ppa) on my Sony Vaio CR11s (x3100). Prior to that I had not experience the issue. I'm writing this from a live usb using a daily Lucid release and the same issue is present but appears to affect the new theme even more. I can produce the affect with any window but it is much harder with some apps than others. For example the Update Manager rarely shows the issue unless you go crazy with resizing (grab a corner and throw it around the screen), where as firefox will show it constantly when resizing. It also seems more common with some themes than others. I would say the more complex the apps is (more widgets to cause redrawing) the more easier the bug is to produce. 
I can grab some more info from my Sony Vaio if needed (after I have poke through the wikis on how to do this).

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[Karmic] loss of window border when using compiz resize plugin, option=normal
https://bugs.launchpad.net/bugs/454218
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