Hi Toddy, This is a subject that I have had plenty of experience on.
As far as the bubble goes, providing it is not too big it should'nt really cause any problems, however it really is good practice to always have two compasses to check one against the other.
When it comes to the de-magnetising problem I have had several problems over the years and have never solved the "how did it occur, problem" but, you can re-magnetise it quite easily, and this is how you do it.
1. Get a small magnet, the one I use is 10mm x 10mm x 20mm.
2. Make sure that you use the "North" pole end, if it is not marked and you use the wrong end, it is not a problem, you will have to repeat the following using the other end of the magnet.
3. Hold the compass in one hand, and using the "N" end of the magnet place it on the centre of the plastic / glass cover directly over the needle pivot point and gentley drag it along the "N" half of the needle, do this about a dozen times and that should do the trick, if it dose'nt keep going until it does. The glory of this is that it will either be right or wrong if its wrong, just keep going until it works, there is no nearly right or nearly wrong.
It can be a little fiddly, as sometimes it does try and grab the "S" end of the needle, but patience will over come this.
Now check your work against a compass that you know is correct
MAKE SURE you are magnetising the correct end of the needle, or you will fond that you will be walking in the wrong direction. This brings plesant memories of a scout hike I organised and purpously calibrated a compass 180 degrees out, the scout leader that I gave it to, did not realise, eventhough he was standing amongst another ten compasses that were all pointing the other way, it was only when he started to walk in the oposite direction that is suddenly clicked, that was 12 years ago, and he has to this day, not been allowed to live it down.
Have fun and if you have any problems PM me. Good Luck.
Steve.