The issue would appear to be the  "Display Status Bar" option of the Nvidia 
drivers. 
Where as in earlier versions of KDE this option appeared to have no effect, (I 
have not noticed it before, and have never seen a nvidia status bar). 

When enabled it causes crashes in the plama workspace in KDE4.2 beta 2.
As I have never specifically enabled this option of the nvidia drivers,
I can only assume it is on by default when the drivers are activated.

I used nvidia-settings to specifically disable this option (it creates a
file .nvidia-settings.rc in the users home directory), and things have
been fine since.

-- 
Kde4.2 beta 2 plasma workspace crash on login
https://bugs.launchpad.net/bugs/309796
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