Well, here's the problem, you have ancient nvidia bits installed.  285
is incompatible with the Ubuntu Precise xserver.

DkmsStatus:
 nvidia-current, 285.05.09, 3.0.0-12-generic, x86_64: installedError! Could not 
locate dkms.conf file.
 File: does not exist.

 nvidia-current-updates, 280.13, 3.0.0-12-generic, x86_64: installed

I'm not sure why that didn't upgrade on its own, but the way to work
around this problem is to uninstall and apt-get purge nvidia*, and then
reinstall nvidia using jockey.

** Changed in: nvidia-graphics-drivers (Ubuntu)
       Status: Incomplete => New

-- 
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/877438

Title:
  [8xxx] Unity/compiz has sluggish performance on dual-head with nvidia
  driver

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/compiz/+bug/877438/+subscriptions

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