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Message #104402
[Bug 674294] Re: Extended Desktop: "Desktop effects could not be enabled"
I faced the same issue with my Asus netbook. Its an issue with Compiz' maximum virtual resolution capability for the netbook graphics chip.
There's a workaround - placement of monitors. You could read on about this workaround here : http://www.geekytalk.snaga.net/2010/03/compiz-and-virtual-resolution-handling.html
Please leave a comment to let me know if it had worked for you.
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https://bugs.launchpad.net/bugs/674294
Title:
Extended Desktop: "Desktop effects could not be enabled"