Resizing a window when the composite extension is on and running a composite manager usually garbles the content of the window. This is a well known problem but I couldn't find any bug reports about it. This was fixed in xserver on 2005-02-08. It would be nice if the fix could be commited to xorg also before the next release!
Created attachment 3196 [details] [review] Patch
Created attachment 3028 [details] Screenshot
What driver are you using? Window resizing works fine for many of us.
That was with xorg 6.8.2 and the nv driver. Anyway I just tried compiling xorg 6.9 from cvs and the problems seems gone now (It wouldn't compile at the time I posted the bug). So I guess this is resolved already.
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