I have encountered this same bug randomly when opening just a single gnome-terminal, usually called by another app (could test opening many gnome-terminals as the OP reports). The screen strobes wildy for about a few minutes and then the it returns to the desktop but whole display is corrupted and barely usable so the machine needs restarted.
I am fairly certain that 260.19.06 is stable and that this occurs only with 270.x drivers on Maverick 10.10 ** Attachment added: "Cas nvidia-bug-report" https://bugs.launchpad.net/ubuntu/+source/nvidia-graphics-drivers/+bug/655832/+attachment/1919502/+files/nvidia-bug-report.log -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/655832 Title: X server 1.9.0 crashes reproducibly when a lot of gnome-terminal windows are opened on GeForce 8800 GTS/nvidia drivers/compiz with `normal' visual effects -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs