The latest update running with kernel 3.8.0-17.27 has resolved this issue for me:
$ dpkg -l|grep nvidia ii nvidia-304 304.88-0ubuntu1 i386 NVIDIA binary Xorg driver, kernel module and VDPAU library ii nvidia-current 304.88-0ubuntu1 i386 Transitional package for nvidia-current ii nvidia-settings 304.51-0ubuntu2 i386 Tool for configuring the NVIDIA graphics driver -- You received this bug notification because you are a member of Ubuntu-X, which is subscribed to nvidia-graphics-drivers-304 in Ubuntu. https://bugs.launchpad.net/bugs/1162013 Title: no terminals with nvidia graphics driver To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/nvidia-graphics-drivers-304/+bug/1162013/+subscriptions _______________________________________________ Mailing list: https://launchpad.net/~ubuntu-x-swat Post to : ubuntu-x-swat@lists.launchpad.net Unsubscribe : https://launchpad.net/~ubuntu-x-swat More help : https://help.launchpad.net/ListHelp