Black borders around the part of each window which hovers above a movie

If I turn off compiz (by setting "System::Preferences::Appearence::Desktop Effects" to "None") the problem goes away.

Amongst the lspci output I see this:
01:00.0 VGA compatible controller: ATI Technologies Inc RV350 AP [Radeon 9600]
01:00.1 Display controller: ATI Technologies Inc RV350 AP [Radeon 9600] (Secondary)

Then amonst the "lspci -n" output I got (lines corresponding to the above lines):
01:00.0 0300: 1002:4150
01:00.1 0380: 1002:4170

Thank you for taking the time to report this bug and helping to make Ubuntu better. You reported this bug a while ago and there hasn't been any activity in it recently. We were wondering is this still an issue for you? Can you try with latest Ubuntu release? Thanks in advance.

FYI: The screenshot attached originally doesn't show the bug because due to another bug the contexts of the overlay video surface is apparently not captured in the screenshot.

Anyway, I no longer see the black border around windows that are placed so that they slightly overlap the video surface of VLC (basically where the compiz window drop shadow should have been I saw only a thick black border instead).

However, I don't think this bug was fixed because I used to have overlay rendering for video playback in VLC and nowadays my driver seems to support textured video even with compiz active so my system configuration can no longer repro the bug.

For some reason, mplayer still uses overlay surfaces to playback video and there I do see this thick border but it's blue instead of black (it's the exact same problem though). Since I'm always using VLC and never mplayer I don't care about this bug personally any more but it's still not fixed I guess.

This updated test was done using hardy heron with all stable updates issued up until 24th of aug 2008.

In that case I'm closing the report. Feel free to open a new report if this problem keeps coming back. Thanks again for reporting.