Unfortunately not even the final version of 10.10 fixed this issue and it 
remains crippling the desktop usage.
I would consider this a major bug because Ubuntu uses the desktop effects by 
default.
Even the upgrade to the 260.xx driver from nVidia did not fix anything.

-- 
[Lucid] Loading nvidia-settings hurts compiz performance
https://bugs.launchpad.net/bugs/574069
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to nvidia-settings in ubuntu.

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