Desktop effects could not be enabled

Please run the following command in the Terminal and post the output:
dpkg -s compiz; lspci; glxinfo | fgrep :

I'm getting similar problem, I have an nvidia 9800GTS and don't get a driver in Additional Driver screen, I've installed latest nvidia driver manually. On trying to launch I get same error. It also has onboard 8200 graphics but disabled. Heres output:

Package: compiz
Status: install ok installed
Priority: optional
Section: x11
Installed-Size: 64
Maintainer: Ubuntu Core Developers <email address hidden>
Architecture: all
Version: 1:0.8.6-0ubuntu9
Provides: x-window-manager
Depends: compiz-core (>= 1:0.8.6-0ubuntu9), compiz-plugins (>= 1:0.8.6-0ubuntu9), compiz-gnome | compiz-kde, compiz-fusion-plugins-main (>= 0.8.6), libcompizconfig0 (>= 0.8.4-0ubuntu3)
Suggests: compizconfig-settings-manager
Description: OpenGL window and compositing manager
 Compiz brings to life a variety of visual effects that make the Linux desktop
 easier to use, more powerful and intuitive, and more accessible for users
 with special needs.
 .
 This metapackage provides the components necessary for running compiz. It
 provides the compiz core, a set of standard plugins, a window decorator using
 the Gtk toolkit and the files necessary to integrate compiz with the GNOME
 desktop environment.
Original-Maintainer: Debian X Strike Force <email address hidden>
00:00.0 RAM memory: nVidia Corporation MCP78S [GeForce 8200] Memory Controller (rev a2)
00:01.0 ISA bridge: nVidia Corporation MCP78S [GeForce 8200] LPC Bridge (rev a2)
00:01.1 SMBus: nVidia Corporation MCP78S [GeForce 8200] SMBus (rev a1)
00:01.2 RAM memory: nVidia Corporation MCP78S [GeForce 8200] Memory Controller (rev a1)
00:01.3 Co-processor: nVidia Corporation MCP78S [GeForce 8200] Co-Processor (rev a2)
00:01.4 RAM memory: nVidia Corporation MCP78S [GeForce 8200] Memory Controller (rev a1)
00:02.0 USB Controller: nVidia Corporation MCP78S [GeForce 8200] OHCI USB 1.1 Controller (rev a1)
00:02.1 USB Controller: nVidia Corporation MCP78S [GeForce 8200] EHCI USB 2.0 Controller (rev a1)
00:04.0 USB Controller: nVidia Corporation MCP78S [GeForce 8200] OHCI USB 1.1 Controller (rev a1)
00:04.1 USB Controller: nVidia Corporation MCP78S [GeForce 8200] EHCI USB 2.0 Controller (rev a1)
00:06.0 IDE interface: nVidia Corporation MCP78S [GeForce 8200] IDE (rev a1)
00:07.0 Audio device: nVidia Corporation MCP72XE/MCP72P/MCP78U/MCP78S High Definition Audio (rev a1)
00:08.0 PCI bridge: nVidia Corporation MCP78S [GeForce 8200] PCI Bridge (rev a1)
00:09.0 IDE interface: nVidia Corporation MCP78S [GeForce 8200] SATA Controller (non-AHCI mode) (rev a2)
00:0a.0 Ethernet controller: nVidia Corporation MCP77 Ethernet (rev a2)
00:10.0 PCI bridge: nVidia Corporation MCP78S [GeForce 8200] PCI Express Bridge (rev a1)
00:12.0 PCI bridge: nVidia Corporation MCP78S [GeForce 8200] PCI Express Bridge (rev a1)
00:18.0 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor HyperTransport Configuration
00:18.1 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor Address Map
00:18.2 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor DRAM Controller
00:18.3 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor Miscellaneous Control
00:18.4 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor Link Control
02:00.0 VGA compatible controller: nVidia Corporation G92 [GeForce GTS 250] (rev a2)
name of display: :0.0
display: :0 screen: 0
direct rendering: Yes
server glx vendor string: SGI
server glx version string: 1.4
server glx extensions:
client glx vendor string: Mesa Project and SGI
client glx version string: 1.4
client glx extensions:
GLX version: 1.4
GLX extensions:
OpenGL vendor string: Mesa Project
OpenGL renderer string: Software Rasterizer
OpenGL version string: 2.1 Mesa 7.9-devel
OpenGL shading language version string: 1.20
OpenGL extensions:
128 GLXFBConfigs:

try this: https://answers.launchpad.net/ubuntu/+source/compiz/+question/129112