I've had those lock-ups in Ubuntu 7.10, just a plain freeze of everything, 
including network, ssh, caps-lock, mouse, etc.
I use the following hardware:
- AMD Athlon XP 1800+ (1533MHz)
- NVidia GeForce2 MX-400

Installed the binary driver through 'Restricted Driver Manager'

What works for me is editing the file /etc/init.d/powernowd.early and setting:
DO_MODULES=no

After a reboot everything works well. 3D-effects, wobbly windows,
everything.

Hope this helps.

-- 
[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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