I can confirm this problem using Edgy (64bit, gnome) and nvidia-glx.

I can also confirm that disabling the the work-around suggested by
jamespharaoh (disabling the composite extension) does work.

I'm going to see if I can get the latest nvidia-glx drivers installed
manually - if that solves the problem (without disabling the composite
extension), I will report it here.

** Attachment added: "An xorg.conf with Xinerama enabled and the composite 
extension disabled - it works too!"
   http://librarian.launchpad.net/5084350/xorg.conf

-- 
gnome-terminal does not start when using xinerama and nvidia
https://launchpad.net/bugs/58232

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