Upon reinstalling the driver after the lagginess came back, rebooting
gave me the other symptom; the random colors and the shifted vertical
display. I've then booted into recovery mode, removed the newly created
xorg.conf, and rebooted.

At the moment, I'm running in a lowly 720x400 (not so nice if you're on
a 22" 1680x1050 screen). The bug still affects me.

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Using NVIDIA drivers in Lucid causes display shift and flicker, or extreme 
slowness with compiz
https://bugs.launchpad.net/bugs/521596
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