It's a problem with the latest nvidia drivers AFAIK.  169.12 worked fine for 
me.  I use xserver-xgl because the performance without is terrible (12fps for 
many things, as reported by compiz benchmark).  I'm either going to revert the 
nvidia drivers or just put up with the speed and hope they can fix it.  Not 
happy with nvidia/compiz right now.
I have a QuadroFX 360M under hardy gnome running compiz

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Gutsy, Nvidia, KDE, Compiz => screen blanks to white when using XGL
https://bugs.launchpad.net/bugs/138355
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