I can confirm this. The last version my Dell Latitude D800 with GeForce4 
graphics worked with, was 8.04. That's what I'm still running. I tried 
installing 10.04 to HD and then installing the binary driver nvidia 96. But the 
problem remained after a reboot.
I remember trying other distros e.g. OpenSUSE last year with the same problem.

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Ubuntu 10.04 Live-CD: desktop has vertical streaks; pointer corrupted
https://bugs.launchpad.net/bugs/573682
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