Context menus dont show until mouse over

if you right click there is no context menu until you move the mouse around to show the options. There is always a gap between the menu items.

This is happening in most apps around 12.04b2

Description: Ubuntu precise (development branch)
Release: 12.04

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: xorg 1:7.6+12ubuntu1
ProcVersionSignature: Ubuntu 3.2.0-20.33-generic 3.2.12
Uname: Linux 3.2.0-20-generic x86_64
NonfreeKernelModules: nvidia
.proc.driver.nvidia.gpus.0: Error: [Errno 21] Is a directory: '/proc/driver/nvidia/gpus/0'
.proc.driver.nvidia.registry: Binary: ""
.tmp.unity.support.test.0:

ApportVersion: 1.95-0ubuntu1
Architecture: amd64
CompizPlugins: [core,composite,opengl,compiztoolbox,decor,vpswitch,snap,mousepoll,resize,place,move,wall,grid,regex,imgpng,session,gnomecompat,animation,fade,unitymtgrabhandles,workarounds,scale,expo,ezoom,unityshell]
CompositorRunning: compiz
Date: Fri Apr 6 13:21:18 2012
DistUpgraded: Fresh install
DistroCodename: precise
DistroVariant: ubuntu
ExtraDebuggingInterest: Yes, whatever it takes to get this fixed in Ubuntu
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Beta amd64 (20120328)
MachineType: System manufacturer System Product Name
ProcEnviron:
 LANGUAGE=en_GB:en
 TERM=xterm
 PATH=(custom, no user)
 LANG=en_GB.UTF-8
 SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.2.0-20-generic root=UUID=7944b2a0-f201-4f6e-86e9-204385ca4f1c ro quiet splash vt.handoff=7
SourcePackage: xorg
Symptom: display
UpgradeStatus: No upgrade log present (probably fresh install)
XorgConf:
 Section "Device"
  Identifier "Default Device"
  Option "NoLogo" "True"
 EndSection
dmi.bios.date: 01/13/2009
dmi.bios.vendor: Phoenix Technologies, LTD
dmi.bios.version: ASUS P5N-D ACPI BIOS Revision 1001
dmi.board.name: P5N-D
dmi.board.vendor: ASUSTeK Computer INC.
dmi.board.version: 1.XX
dmi.chassis.asset.tag: 123456789000
dmi.chassis.type: 3
dmi.chassis.vendor: Chassis Manufacture
dmi.chassis.version: Chassis Version
dmi.modalias: dmi:bvnPhoenixTechnologies,LTD:bvrASUSP5N-DACPIBIOSRevision1001:bd01/13/2009:svnSystemmanufacturer:pnSystemProductName:pvrSystemVersion:rvnASUSTeKComputerINC.:rnP5N-D:rvr1.XX:cvnChassisManufacture:ct3:cvrChassisVersion:
dmi.product.name: System Product Name
dmi.product.version: System Version
dmi.sys.vendor: System manufacturer
version.compiz: compiz 1:0.9.7.2-0ubuntu4
version.ia32-libs: ia32-libs 20090808ubuntu35
version.libdrm2: libdrm2 2.4.32-1ubuntu1
version.libgl1-mesa-dri: libgl1-mesa-dri 8.0.2-0ubuntu2
version.libgl1-mesa-dri-experimental: libgl1-mesa-dri-experimental N/A
version.libgl1-mesa-glx: libgl1-mesa-glx 8.0.2-0ubuntu2
version.nvidia-graphics-drivers: nvidia-graphics-drivers N/A
version.xserver-xorg-core: xserver-xorg-core 2:1.11.4-0ubuntu7
version.xserver-xorg-input-evdev: xserver-xorg-input-evdev 1:2.7.0-0ubuntu1
version.xserver-xorg-video-ati: xserver-xorg-video-ati 1:6.14.99~git20111219.aacbd629-0ubuntu2
version.xserver-xorg-video-intel: xserver-xorg-video-intel 2:2.17.0-1ubuntu4
version.xserver-xorg-video-nouveau: xserver-xorg-video-nouveau 1:0.0.16+git20111201+b5534a1-1build2