Dark background and borders around icons

Hi,

     I have Ubuntu 10.10/Gnome 2.32.0/Docky 2.0.11 r1434 installed on an intel HD(i915) laptop. The initial installation of Docky on fresh installed Ubuntu 10.10 (from iso image) was OK, but since I installed the latest Intel graphics driver via "ppa:glasen/intel-driver". A dark background showed up behind docky panel and each icon has a border around it (see http://img156.imageshack.us/img156/2299/selection001z.png). I have Compiz running, and I didn't see an error like "Docky needs compositing." as other posts mentioned. Manually restart docky does not fix the problem. And I noticed that if I turned on panel mode, the background and border disappear.

    Is it a bug (docky or intel-driver)? Can someone advice a solution for it?

Thanks.

    The output from "docky -d" is attached here:

~$ docky -d
[Info 21:55:31.095] Docky version: 2.0.11 bzr docky r1434 pre-release
[Info 21:55:31.100] Kernel version: 2.6.35.25
[Info 21:55:31.101] CLR version: 2.0.50727.1433
[Debug 21:55:31.257] [SystemService] Using org.freedesktop.UPower for battery information
[Info 21:55:31.338] [DockServices] Dock services initialized.
[Debug 21:55:31.350] [UserArgs] BufferTime = 0
[Debug 21:55:31.350] [UserArgs] MaxSize = 2147483647
[Debug 21:55:31.351] [UserArgs] NetbookMode = False
[Debug 21:55:31.351] [UserArgs] NoPollCursor = False
[Debug 21:55:31.419] [PluginManager] Plugin manager initialized.
[Info 21:55:31.421] [DockController] Setting theme: HUD
[Info 21:55:31.603] [PluginManager] Loaded "Docky.Widgets,1.0".
[Info 21:55:31.603] [PluginManager] Loaded "Docky.Widgets,1.0".
[Info 21:55:31.603] [PluginManager] Loaded "Weather".
[Info 21:55:31.604] [PluginManager] Loaded "Trash".
[Debug 21:55:31.886] [AbstractWeatherSource] Weather Underground: reload success
[Info 21:55:31.889] [AbstractWeatherSource] Weather Underground: Reloading weather data
[Debug 21:55:31.893] [AbstractWeatherSource] Weather Underground: Fetching XML file 'http://api.wunderground.com/auto/wui/geo/WXCurrentObXML/index.xml?query=92037'
[Info 21:55:33.310] [Helper] Starting rhythmbox_control.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/banshee_control.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/deluge_badge.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/gajim_badge.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/gtg_menus.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/liferea_badge.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/open_terminal_here.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/pidgin_control.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/rhythmbox_control.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/tomboy_menus.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/zeitgeist_docky.py
[Info 21:55:33.327] [HelperService] Helper added: /usr/share/docky/helpers/zeitgeist_journal.py
[Info 21:55:33.337] [DrawingService] Could not find 'gtg', using fallback of 'extension'.
[Debug 21:55:37.276] [AbstractWeatherSource] Weather Underground: Fetching XML file 'http://api.wunderground.com/auto/wui/geo/ForecastXML/index.xml?query=92037'
[Debug 21:55:37.518] [AbstractWeatherSource] Weather Underground: reload success