I've been playing around with the settings and I noticed that if you *do
not* set this:

nvidia-settings -a InitialPixmapPlacement=2 -a GlyphCache=1

it greatly reduces the problem. It doesn't eliminate the problem but at least 
things are usable.
Has everyone else having this problem been using that setting?

This problem seems to be acknowledged by Nvidia
"Please note: it has been reported that using a compositing manager in 
conjunction with this option will cause newly-created windows to briefly 
display random contents instead of black before being first drawn. We are aware 
of this non-critical issue and planning to fix it in a future NVIDIA Linux 
graphics driver release."
It doesn't mention "refresh" problems specifically but it seems to be in the 
same category as this.

lspci -n | grep 300
01:00.0 0300: 10de:0427 (rev a1)
lspci | grep VGA
01:00.0 VGA compatible controller: nVidia Corporation GeForce 8400M GS (rev a1)

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