I'm also having this issue, pretty much as everyone explains it above.

Two NVidia cards, 3 cards.
NVS290 - Center and Right
GeForce 8800 - Left

Twinview won't work with 3 or more screens.  nvidia-settings might give
you a config that lets you login, but don't count on it being usable.
If you hand tune an xorg.conf you can get it looking ok, but the window
manager doesn't get any of the monitor boundary info so windows pop
between monitors, or sometimes off the screen.

I'll give downgrading the xorg packages a chance tonight, but my next
stop will be back to hardy.

-- 
X.org will stop responding to mouse clicks on Ibex with Xinerama.  Occurs 
frequently, Fatal Error.
https://bugs.launchpad.net/bugs/296167
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