The configurable NotifyOSD notification bubbles PPA has been updated for Ubuntu 11.10 Oneiric Ocelot. This PPA provides a patched NotifyOSD that supports various customizations such as:
change font and background colors, opacity, size, corner radius
change the timeout (only works if an application specifies the timeout)
change the position on the screen
disable fade out
close the notifications on click
more
Here is and older video (recorded back when the PPA was updated for Ubuntu 11.04) demoing the configurable NotifyOSD notifications:
Please note that in my test I was able to set the notifications on all the supported screen positions (top left, bottom left, etc.), except for bottom right.
Thanks to inameiname for the tip and to Leolik for the PPA!
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