If this is the bug where the logout window does not appear (because it's actually invisible), then I think this bug is not gone. At least, it happens to me.Is this bug really gone? I'm using the latest driver from the dapper repos (8756) and everything seems to work fine except for the fact that every time I try to logout, the screen locks completely.
But there's a workaround. You can disable the Ubuntu logout window and use the vanilla gnome logout dialogs instead. (My experience here is with dapper -- might not apply to breezy.) To do this, open up gconf-editor and navigate to apps-->panel-->global. Then check "upstream-session". Restart the panel and you are all set.
The panel's System menu should now have two entries for "Log out ..." and "Shut down...", each of which puts up a simple dialog.