@Robert Hooker - Thank you, Alberto Milone's PPA solved the issue.
Desktop Effects activated with 96.43.17 and the password at GDM login is
now working!
This is what I have done:
-Installed Ubuntu Desktop i386 (20100419.1) test ISO on Wubi (ONLY TO TEST ;-) )
(Other Bug found FIX - if
ftp://download.nvidia.com/XFree86/Linux-x86/96.43.17
solves GDM password login hang on Lynx RC TEST ISO, but Desktop Effects are
impossible to start again!!
(Acceleration was finally working in Ubuntu Desktop i386 (20100419.1)
HARDWARE - NVIDIA Geforce4 MX 440 64 Mega NVIDIA Geforce2 MX 400