I have a BFG 7600GT and I also see this problem running the nvidia
driver with Hardy Beta .  GDM loads fine and gnome will start up,
displaying the splash screen.  After the splash screen disappears I'm
left with a brown background and a mouse cursor surrounded by a pattern
of dark pixels.  The mouse cursor moves jerkily and ALT+F1, ALT+BKSPC
and ALT+CTL+DEL do not work.  Gutsy worked fine for me with nvidia and
Hardy works with the nv driver.

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gnome freezes after proprietary nvidia driver install
https://bugs.launchpad.net/bugs/146954
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