This sounds a lot like Bug #32389 .
C Pirnat:
Do you have the same problem when you use the nvida-glx-new drivers?
Settings to needsinfo pending reply from C Pirnat.
** Changed in: linux-restricted-modules-2.6.20 (Ubuntu)
Status: Confirmed => Needs Info
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Switch user causes lockup
https://bugs.launchpad.net/bugs/88152
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