This problem seems to affect 32 bit version of Ubuntu. I just realized
my working xubuntu install was 64 bit as opposed to the 32 bit I was
using for Ubuntu. So I decided to try out 64 bit Ubuntu and guess what?
Shuts down and reboots as expected every single time and I've been using
for a couple of days and have not experienced any hangs.

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https://bugs.launchpad.net/bugs/987933

Title:
  10de:0407 Ubuntu 12.04 shutdown hangs with proprietary nVidia driver

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