For what's it worth, this started happening for me in Maverick, see bug
607490.
** Changed in: nvidia-graphics-drivers (Ubuntu)
Status: Confirmed => Triaged
** Changed in: nvidia-graphics-drivers (Ubuntu)
Importance: Undecided => High
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" Failed to allocate video memory" nvidia-current on lucid
https://bugs.launchpad.net/bugs/537218
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