I also have this problem with
01:00.0 VGA compatible controller: nVidia Corporation NV34 [GeForce FX 5200]
(rev a1)
I had to add only
Option "AddARGBGLXVisuals" "True"
to the screen section of xorg.conf and then restart gdm; then compiz
"works" (although it still crashes if I switch to a different virtual
console and back, see bug #95926
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Compiz & nVidia not working.
https://bugs.launchpad.net/bugs/89293
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