I also have this issue using the 295.20-0ubuntu0.1 driver.
I am using Gnome-shell (GNOME Shell 3.2.2.1) and when I hit the meta key to 
show the 'windows' view everything operates normally. But when I start typing 
to search for a program GNOME crashes, restarts and then if I do it again 
GNOME-shell will crash permanently.

Switching from the 
NVIDIA accelerated graphics driver (Post-release updates) (version 
current-updates)
to
NVIDIA accelerated graphics driver (version current) [Recommended]

Using the 'additional drivers' tool in ubuntu 11.10 solved the issue

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https://bugs.launchpad.net/bugs/938624

Title:
  unable to open launcher using nvidia driver

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