I can confirm that I'm also having this issue on 10.10 x32 with nVidia
drivers.

Was having this issue with 10.04 as well.

yes with Visual effects disabled you can get Client side info but with
visual effects enabled it does not automatically disable when someone
connects.

If you setup a vncserver :1 and higher the issue does not present
itself...it only affects the main Desktop vncserver :0

in earlier versions there was a built in visual effects auto disable
when VNC connected to the main desktop...but not since 9.14.

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https://bugs.launchpad.net/bugs/353126

Title:
  Compiz / vnc screen refresh with nvidia-restricted
  driver/VirtualBox/ATI fglrx driver using X.org

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