The problem with enabling the "visual effects" might still be related to
Jockey (i.e. it's still a different bug).

It looks like nvidia-settings didn't touch your xorg.conf at all.

Type:
sudo nvidia-settings

configure the screen resolution and refresh rate as you like and then
click on the "Save to X Configuration File" button. Then log out and log
in.

Let me know if you can still reproduce the problem.


P.S. next time please attach the file (by clicking on "Add a comment/attachment
" and then on "Attachment") instead of copying and pasting its content in the 
bug report.

-- 
gnome-settings-daemon conflict with Nvidia Xserver settings in 8.10
https://bugs.launchpad.net/bugs/300287
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