I have the same problem, with NVIDIA ION graphics card, ubuntu 11.04 and 
Windows 7 dual-boot.
NVIDIA accelerated graphics driver (version current) [Recommended]
"This driver is activated but not currently in use."
And unity doesn't work.

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https://bugs.launchpad.net/bugs/772207

Title:
  version 173.14.30 is buggy for NVidia GeForce FX series

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