I have this issue on a laptop with Nvidia GT9650 .
It is possibly a video card hardware issue, but I am unsure.
I read on a post that some people were not having issues when in the nvidia x 
settings app, under PomerMizer, the Preferred Mode is set to Prefer Maximum 
Performance.

If anyone has a definitive answer on wether this is a hardware issue,
please post here

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https://bugs.launchpad.net/bugs/733374

Title:
  X freeze, nvidia-current, Ubuntu 11.04 Maverick GeForce 9600GT

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