This is Debian bug 345700. Adding option XaaNoSolidFillRect to the top
of your Screen section of your xorg.conf works around it, like this:
Section "Screen"
# Workaround for Debian bug 345700, Ubuntu bug 77774
Option "XaaNoSolidFillRect"
...
Added link to the Debian bug.
** Bug watch added: Debian Bug tracker #345700
http://bugs.debian.org/cgi-bin/bugreport.cgi?bug=345700
** Also affects: xserver-xorg-video-nv (Debian) via
http://bugs.debian.org/cgi-bin/bugreport.cgi?bug=345700
Importance: Unknown
Status: Unknown
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Text cursor appears in wrong place(s)
https://launchpad.net/bugs/77774
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