INDIRECT="yes" is equivalent to remove --loose-bindings and to add
--indirect-rendering

removing --loose-bindings avoids the problem
adding --indirect-rendering seems useless, and add another problem

To see the problem, launch nvidia-settings, enable anisotropic filter, then 
compiz --replace, and see the quality when looking at a cube face from 70° (no 
filter at all is applyed).
Do the same test without --indirect-rendering : it's far better :)

-- 
Screen refresh problems with nvidia on intrepid
https://bugs.launchpad.net/bugs/269904
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