Here's my experience with a nvidia 8600GT card on ubuntu 12.04. All previous 
ubuntu releases have worked fine with with proprietary driver over many years. 
Installed clean 12.04 and using gnome-shell + gnome3 team ppa, nvidia driver 
295.40 did a segmentation fault after a hour or so mainly just using terminals 
and chrome. Installed v295.49 direct from nvidia web site. Still seg faulted 
after a couple of hours. Installed v302.07 direct from nvidia web site, seg 
faulted after a few more hours. I have listed the xorg log seg faults 
[url=http://ubuntuforums.org/showpost.php?p=11904367&postcount=8]here[/url] and 
[url=http://ubuntuforums.org/showpost.php?p=11907292&postcount=10]here[/url].
Then added xorg-edgers ppa which includes v302.07 plus other updated xorg 
stuff, still get seg fault after a few hours.

Removed nvidia driver and fell back to nouveau (still from latest xorg-
edgers) and Unity 3D plus gnome-shell working beautifully. Note also
that virtual consoles (alt+F1->f6) work with nouveau but just gave black
screen on all nvidia versions with 12.04.

Note that the Settings/Additional Drivers dialog says that a user MUST
install nvidia proprietary drivers before Unity 3D will work, to get
desktop effects, etc. Clearly this is not true anymore. Nouveau is
working without compromise for me.

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which is subscribed to the bug report.
https://bugs.launchpad.net/bugs/982485

Title:
  [regression] Nvidia 295.40: Unity 3D does not work at all with the new
  nvidia driver

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