In this tip we will see how to make the black background of your terminal transparent under Ubuntu 11.10/12.04. You don't need any third-party tool or software to make the terminal background transparent because the terminal settings window allows to add the transparency effect as described below.
1. Launch the terminal (Ctrl+Alt+T) and in the global appmenu, head to Edit > Profile Preferences:
2. Open the Background tab and select the "Tranbsparent background" option, then adjust the transparency effect to whatever you want:
3. If the terminal text is not well visible after applying the transparency effect, then move on to the Colors tab and check off "Use colors from system theme" and set any color of your choice in the "Text color" option: