A more simpler fix in /usr/bin/compiz is to change line 80 from
  INDIRECT="no"
to
  INDIRECT="yes"
(This change also disables --loose-bindings but at the same time enables 
--indirect-rendering)

For me, this seems to give the same performance as the change in my last
comment.

-- 
Screen refresh problems with nvidia on intrepid
https://bugs.launchpad.net/bugs/269904
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