Confirmed.

I'm using Hardy Alpha 5 and I'm also experiencing this bug on a Dell
Optiplex GX260, with integrated Intel video, so it's not just an nvidia
thing.  It makes the desktop essentially useless because it's so slow
now.

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[Hardy] Xorg high CPU usage with 2.6.24 kernel and nvidia-glx
https://bugs.launchpad.net/bugs/178400
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