Gnome 3.2 problems in the shell

Install the latest ATI 11.10 drivers, people are reporting that updating their driver solves the problem for them.

You will need to remove all the current fglrx packages from your system and download the driver from the ATI site.

Remove the fglrx drivers if you installed them

sudo apt-get remove fglrx*

Download the newest ATI driver (current version is 11.12)

wget http://www2.ati.com/drivers/linux/ati-driver-installer-11-12-x86.x86_64.run

If you have a 64 bit system, then install this before anything

sudo apt-get install ia32-libs

Once downloaded go to the file location and set it to run as executable

cd /path_of_the_file
chmod 755 ati-driver-installer-11-12-x86.x86_64.run

Create the packages and install them on your system

sh ./ati-driver-installer-11-12-x86.x86_64.run --buildpkg Ubuntu/oneiric
sudo dpkg -i fglrx*.deb

Once the driver is installed you need to start up a new xorg.conf file with this command

sudo aticonfig --initial -f

Reboot

sudo reboot

I had the same problem a few months ago. It looked exactly like that and did some other stuff. It looked like this:

It was the graphics driver I had installed. Just navigate to Settings->Additional Drivers and uninstall them. If it doesn't work, log in to Ubuntu and uninstall them there. Then reboot. It worked for me! Hope this helps