Hey, I'm adding a comment here as it seems I have a very similar
problem. I'm running Ubuntu 7.10 for desktop, I've just switched from
Windows few weeks ago. My system is:

AMD Athlon X2 4400+
ASUS M2N-VM DVI (GeForce 7050PV integrated video on nForce 630a)
ADATA 2GB 800MHz DDR2

I've installed NVidia driver through the Restricted Driver Manager.
While using Gnome with full hardware acceleration (the mode with
additional visual effects) my system hangs after few minutes and screen
fills with skewed multicolor stripes (just like described here <a
href="https://bugs.launchpad.net/ubuntu/+bug/109810";>Bug #109810</a>).
If I run Gnome without visual effects, the system works fine (or so it
seems).

Looks like this problem is video related somehow (or video application
triggers it). When I launch some video application, like World of
Warcraft (running with Wine), the game often hangs on random basis.
Usually in first minute of application running. Such lock up needs a
hard reset. Sometimes everything runs fine without hanging so this issue
is a bit random.

I've read that this can be caused by Cool'n'Quiet feature of AMD
Processors, but at this moment I'm not sure if such feature is turned on
in my BIOS. Once I'm back at home I have to check it. TBH this problem
is driving me mad, I really hope that disabling CnQ would help, at least
for now.

-- 
[nvidia-glx] [amd64] Frequent lock ups with white screen with black lines when 
using nvidia binary driver with CPU speed scaling/Cool 'n Quiet
https://bugs.launchpad.net/bugs/109643
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