This bug hasn't affected 12.04 beta 2 64bit. I have tried to replicate
it on two seperate machines.

Machine 1 (GTX470) Running 12.04 beta 2 with all latest updates - Working Fine
Machine 2 (GTX260) Running 12.04 beta 2 with all latest updates - Working Fine

Must be limited to i386? Can Anyone confirm?

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https://bugs.launchpad.net/bugs/982485

Title:
  nvidia 295.40 breaks unity 3d

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