Are there 3D effects on Xubuntu? (hardware-accelerated graphics)
Solution 1:
Xubuntu doesn't come with Compiz so no 3D effects out of the box, but turning on the Composite feature gives you many effects like transparency and shadows plus it allows you to use 3D programs like Docky...
To enable go to: Applications -> Settings -> XFCE Settings Manager
Then run: Window Manager Tweaks - Compositor (tab) and Enable
...and from there play with the settings and fancify your desktop :)
Solution 2:
Xfce by design leaves out much of the eye candy of other systems. There aren't even fancy animations. The most you can get is 2D accelerated compositing if your driver supports it (most do), unless you are willing to install other software.
You have to enable the compositing feature in XFCE's settings manager, and to my memory it will use hardware acceleration automatically. (You may need to do this manually but I am on unity so I cannot test it).
Solution 3:
In xubuntu 12.10 go to:
Settings Manager -> Window Manager Tweaks and navigate to the last pane "Compositor". Check the "Enable display compositing"
I know, its not of direct use for a one year old question - but I got stuck in 12.10 and landed on this site. Consider this an update of TenPlus1's answer.