Same problem here. nVidia states "You can only run one X server per
GPU."
http://www.nvnews.net/vbulletin/showpost.php?p=1379365&postcount=14

I think this bug should have a high priority since Desktop Effects will
be enabled by default and will affect a large number of users.


** Attachment added: "nvidia-bug-report.log.gz"
   http://launchpadlibrarian.net/9304704/nvidia-bug-report.log.gz

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nvidia-glx] Switch user/switch VT causes lockup with 
compiz/beryl/desktop-effects
https://bugs.launchpad.net/bugs/88152
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