Thanks Marc. Downgraded by installing the debs. Rebooted  Didn't not help.  
Then I reinstalled the Nvidia drivers again which rebuilds the kernel modules 
and the issue is resolved.  
I don't know which did the trick.  Perhaps I should try updating x  via Update 
Manager again and then reinstalling the Nvidia drivers?

The Nvidia driver was downloaded from Nvidia's website.

gdekatt@sandbox:~$ glxinfo
name of display: :0.0
display: :0  screen: 0
direct rendering: Yes
server glx vendor string: NVIDIA Corporation
server glx version string: 1.4
...
OpenGL vendor string: NVIDIA Corporation
OpenGL renderer string: GeForce 7900 GT/GTO/PCI/SSE2
OpenGL version string: 2.1.2 NVIDIA 275.09.07
OpenGL shading language version string: 1.20 NVIDIA via Cg compiler

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xorg-server in Ubuntu.
https://bugs.launchpad.net/bugs/877905

Title:
  [lucid] glx regression after upgrading xorg-server packages to
  versions in USN-1232-1

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