Same problem here. 
I have gutsy running compiz on an Nvidia 7600GT card, with the latest 169.7 
driver. 

Mouse works, but the rest of the system appears to be frozen. If i press
the power button (I have it preset to shutdown) the system will start a
normal shutdown. So that proves the whole system is not fully locked up,
just the gui portion.

All of the other screen savers work perfectly. Worked around the problem
by deleting the braid screen saver.

-- 
[nvidia] braid screensaver crashes system with compiz activated
https://bugs.launchpad.net/bugs/101943
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