My CompizConfigSettingsManager (General Options/"Focus and Raise behavior" tab) has the "Raise On Click" checkbox checked and "Click to Focus" and "Auto Raise" unchecked.
Here's how I got it to work:
Opened K->System Settings->Window behavior (Look & Feel section)
Selected Window Behavior (first icon on the left side), clicked "Focus" tab.
Under Focus Policy (dropdown), selected Focus follows mouse (this is what I like)
Checked the "Click to raise window" checkbox and hit Apply button.