I have the same behavior as above.  Just checking back today to see if there's 
been any progress.  I'm using Classic no effects just fine, but am curious 
about Unity.  Would be happy to help sort it though I don't know where to begin.
Dell Dimension E520, C2D, E4300 (1.8 Ghz)
GPU: Geforce 7300LE, TC, DIM, M
Monitor: Dell E770

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https://bugs.launchpad.net/bugs/726496

Title:
  Cannot use Unity or Classic desktop with effects after the latest
  nvidia+xorg update

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