I have the same symptoms with the new nvidia 177.70 driver when I move a 
mplayer window (using xv as vo) slightly outside of the screen.
100% reproducible. 

nvidia-glx-177         177.70-0ubuntu1
xserver-xorg-core     2:1.4.99.906-2ubuntu2
linux-image-2.6.27-2-generic  2.6.27-2.3
mplayer-nogui        2:1.0~rc2-0ubuntu13

** Changed in: xorg-server (Ubuntu)
       Status: New => Confirmed

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X Lockup in Intrepid (infinite loop)
https://bugs.launchpad.net/bugs/259808
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