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I feel sorry for upgrading to that buggy version. One of the issues is that terminal background, which I configured to be transparent, became solid color, even though it is set to transparent in preferences. How can I get back my transparency? Is it due to any libraries missing?

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Look in your Settings Manager, Window Manager Tweaks and check to see if compositing is On – duffydack Dec 22 '11 at 17:14
up vote 5 down vote accepted

duffydack is spot on, I just wanted to add a screen shot.

It is under your settings, window manager tweaks

Make sure "Enable display compositing" is checked off (unlike the picture I posted), and you can adjust some other options while you are there ;)

enter image description here

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Thanks, it helped. – Nordvind Dec 23 '11 at 7:18
I followed this suggestion but my terminal is still a solid color. I am using the terminator terminal and have the transparency set to .6. – dustin Apr 5 '13 at 14:00
Thanks, works fine in Xubuntu 14.04. – Adriano Silva Apr 22 '14 at 16:25

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