jjericho,

Although I appreciate your tests performed, they show nothing more than
the workaround that has been around for quite some time, namely, disable
compiz. You were saying that you believe it was something nvidia changed
in their new drivers, I have to disagree with reference to J N B's and
my own experimental findings where the same drivers worked in 8.10. It
is thus more likely that this is caused by an x.org issue as the
discussions between J N B and Travis indicates.

-- 
Compiz / vnc screen refresh with nvidia-restricted driver/VirtualBox/ATI fglrx 
driver
https://bugs.launchpad.net/bugs/353126
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