I have a GeForce 7300 LE and have exactly the same issue. I also get
random black and white blocks and garbled characters during boot up. I
tried the nvidia-173 driver, but this was worse for me. With the 173
driver I get the same black and white garbled stuff on the login screen
too. Also, a restart does not help. It remains garbled and black and
white until the PC is cold booted (powered off for a few seconds), so it
seems to mess up the card so bad it cannot even hard reset!

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https://bugs.launchpad.net/bugs/728745

Title:
  [nvidia, 7300, 7400] display freeze when using unity desktop

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