Similar story here:
I have a macbook pro 4.1 (core 2duo) with an uptodate ubuntu 8.10. the terminal 
urxvt give the most refresh problems. When it spits out long lists (like for 
'locate e') the terminal screen gets scrambled). Even sometimes the update 
manager screen list (of to-be-updated ubuntu items) scrambles. I've not seen a 
difference between the 173 and 177 drivers.

I now switched from compiz to metacity, which resolved the problem, so
I'd say that the problem is purely graphics card. (never a program
crashed or complained about the scrambling).

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garbled Emacs display when running under compiz with nvidia drivers
https://bugs.launchpad.net/bugs/303224
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