I think the new 100.14.19 driver should fix this issue.
The complete changelog can be found here: 
http://www.nvidia.com/object/linux_display_ia32_100.14.19.html
And the item that i think is concerned to this issue is this: Fixed a problem 
causing X to render incorrectly after VT switches with composited desktops.
I've had this issue before, after enabling compiz. Disabling compiz works 
around the issue.

Please update to 100.14.19 before the release of gutsy, as there is
quite a large number of fixes in the new driver.

-- 
[Gutsy] User switching not working with nvidia driver
https://bugs.launchpad.net/bugs/135809
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