I found that Compiz Fusion did not work properly until I had both my video card
and monitor configured properly. When I had the right card properly configured,
but it just showed a generic monitor it would give me hi res, but no desktop
effects. Once I configured for the proper monitor instead of a generic VGA
monitor, everything worked to my expectations. I have an HP 17 inch LCD monitor
with an Nvidia card. For some reason, some distros do not detect it and just
give me a generic 17 inch VGA. Usually the Nvidia card is properly detected and
I either get the right driver the first time or it offers to install the
restricted one.

I have used Envy with great success and urge you to give that a try for video
card drivers.