I recently upgraded to Ubuntu Gutsy Gibbon with the built-in Nvidia drivers and discovered that my dual monitor desktop reverted to the annoying behavior of placing windows and dialogs dead center in the expanded desktop, right at the split between the two monitors. It would also maximize windows across both monitors rather than just one.
After trying various configuration options in xorg.conf, I found that a simple change to the Compiz Advanced Desktop Effects Settings fixed this problem, at least for most windows. (Some dialogs still split the screens.)
First, install the compizconfig-settings-manager package, which adds the Advanced Desktop Effects Settings application to the System->Preferences menu.
Next, launch that preference app and select the “Display Settings” tab. Manually set the display output configuration in the “Outputs” section, then uncheck “Detect Outputs”. For example, for my side-by-side 1280×1024 screens:
Logout and restart X (Ctrl-Alt-Backspace). That should fix the problem.
Some of the Compiz effects may wind up restricted to a single monitor. To fix this, many of them have options to span the effect across all monitors. For example, the “Scale” effect has the following option:


Thanks man, fixed my issue after fiddling with the X config for so long.
Good work! Didn’t even have to restart X :)
Thanks, this worked great for me in Hardy Heron as well (8.04.1 on a Dell Latitude D620 with NVidia Quadro NVS 110M).