I think the bug is still present in latest release. For after my upgarde from 
10.10 (in which Compiz worked fine) I had to major issues:
1. X did not start. It crashed and I ended up in console 1. Manually setting 
the general vesa driver in /etc/Xorg worked was a temp solution. Final solution 
is described at the Natty Narwwhal Release Notes ("apt-get install 
linux-headers-generic-pae". See bug 772226.)
2. Next Unity freezes/hangs. Classic mode with visual effect also. Classic mode 
without visuals effects worked. At last!

System info:
$ lspci | grep -i vid
01:00.0 VGA compatible controller: nVidia Corporation G71 [GeForce 7300 GS] 
(rev a1)
$ uname -a
Linux asterix 2.6.38-8-generic-pae #42-Ubuntu SMP Mon Apr 11 05:17:09 UTC 2011 
i686 i686 i386 GNU/Linux

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to nvidia-graphics-drivers in Ubuntu.
https://bugs.launchpad.net/bugs/728745

Title:
  [nvidia, 7300, 7400] display freeze when using unity desktop

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