Uninstalling xserver-xgl is not a solution.
Without Xgl server (running on nVidia drivers only) Compiz is unstable, Emerald 
leaks memory as hell - this renders Compiz desktop unusable.
You may search launchpad for related bugreports. This is related to buggy 
off-card texture storage. Nvidia drivers are broken and push testures to system 
memory, but never frees it back. The more on-card memory you have, the longer 
it takes this bug to hit you, but it will hit you. So, you cannot count on a 
stable system with nVidia texture-from-pixmap implementation + Compiz.

So far, the solution was to install xserver-xgl. This gives very fast and 
stable Compiz desktop.
With this regression, one cannot have stable Compiz desktop on nVidia cards.

You will have many complaints by Gutsy->Hardy adopters if you do not fix
this.

So far the overral Hardy experience for me was a major upgrade from havily 
broken Gutsy and Feisty.
This regression makes Hardy yet another Ubuntu release that breaks things that 
worked fine before...

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error starting GNOME Settings Daemon
https://bugs.launchpad.net/bugs/199960
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