So what was the problem ?
Compiz was not installed properly ! Gnome Control Center showed the Desktop Effects tool (confirming that Compiz is installed), however when I opened the Gnome configuration editor (gnome-editor) I couldn’t find Compiz under the apps.
So I removed Compiz which was installed from software.opensuse.org and installed the one which was available on the SuSE 10.1 DVD.
There were a couple of other configuration I did as per the instructions in this post:
The article may seem specific to NVidia Graphics card, however the same can be used for ATI Graphics card as well. If you have a ATI Graphics card refer to this article to setup the Fglrx driver !
So was it worth the time I spent setting it up ?
Absolutely yes ! I setup Xgl on both Gnome and KDE and it works better on KDE. I thought the effects in Vista were cool ! However Xgl effects are ultra-cool. See these photos to believe it
I have uploaded a few more photos here: