Can you try removing your /etc/X11/xorg.conf and see if the automatic
configuration works better?
Also, test out running Classic Desktop (No effects). If that works,
then I wonder if its just a max texture size limitation of the hardware.
** Changed in: nvidia-graphics-drivers (Ubuntu)
Status: New => Incomplete
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https://bugs.launchpad.net/bugs/727112
Title:
nvidia-current does not detect hardware capabilities correctly
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