I can confirm this problem in Player 4.0. Frequently when I switch to unity, the Terminal is very skinny but as tall as my screen. I do not recall this happening in 3.x with Unity.
I would like to confirm this issue too. I saw this with 4.0 a few weeks back and I just tried 4.0.1 and it does the same. I too am running Ubuntu in Unity mode on a Windows 7 host with two displays. I'm not sure if the two displays part is the cause but at least with 3.x I had to run with two displays to see anything on the second display. The host is a laptop and it only has two displays when I have it in a docking station.
I'm back on 3.1.5 for now but 4.0 has some nice features so please fix this soon!!! Does vmware staff monitor these forums or do we need to file a bug somewhere?
It was a mixed bag discovering this thread. On the one hand, it was comforting to see that others have this same issue. However, it also appears there is no solution as yet.
In my case, it's not just the terminal window, but any application window that will not restore correctly after being minimized. In addition (all Unity Mode)...
a) The top 1/2" of the screen is unusable. This appears to be the same width as the border of the desktop window when NOT in Unity mode.
b) When an app is maximized, the top title bar (and window control buttons) are not visible. This is related to issue a.
c) Sometimes things go haywire to the point where I have to logout to reset my X session.
I'm also on Windows 7 Pro with dual displays.