Deate , if i had read your post before installing v2.0 , i wouldn't have!
sorry man!my newbie opinion is that is something with drivers...
pch.shot , u say to enable compiz but set Visual Effects to : none? (because ,low graphic card?)
Deate , the i think the photo u sent reveals the problem
i had not that. in the place u have nvidia , i have ... nothing.
the reference in ati was in a sub menu in the hardware menu!
(my workspaces were locked (one worked)i have 2. 2nd worked if Visual effects were at: none , or normal.)
so , i think that for some reason drivers are not accepted by the OS.(maybe its silly though )
also i have done the installation as u said, + i was uninstall envy. (after reboot , i put it again)
{someone said me that maybe if i give some codes in console will set drivers alive}
i dont knownow i have v2,0 (its no envy, or i am blind)
Envy is gone, that's why I was trying to solve your problem with 1.8, Envy usually makes it easy! But, now that you've moved on, let's try to get you going with what we now have available 
Go to SYSTEM>ADMINISTRATION>HARDWARE DRIVERS...and try to install from there,we'll see what happens there, if you do get the drivers installed, then checking your SYSINFO should show up somthing like mine where mine says NVIDIA, if that is there...go to PREFERENCES>APPEARANCE>VISUAL EFFECTS again and try EXTRA again...ANY others questions, or if this doesn't work, post a new thread in the 2.0 section with the title "Driver Problems" and we'll see if we can help you from there 
