I see same issue on Ubuntu 11.10 and 12.04 (daily build) on HP EliteBook
8540w.

On first attempt to switch system becomes unresponsive and display
garbled. After 15 seconds display is restored. Second attempt usually
works ok.

Here is my hardware info:

01:00.0 VGA compatible controller: nVidia Corporation GT216 [Quadro FX
880M] (rev a2)

I'm using latest nvidia-current and nvidia-settings package.

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https://bugs.launchpad.net/bugs/861140

Title:
  unity 3d display switch does not work

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