Tried with Linux Mint 13 (Cinnamon 64-bit) Live DVD on USB and faced the 
exactly same situation
- Coloured noise on NVidia
- All well on integrated Intel graphics (G33)

Not suprising I guess seeing how Mint 13 is directly derived from
Precise.

To try something else, I installed Linux Mint 13 (Cinnamon 64-bit) to
another large USB and booted from it (using the Intel graphics).

I then followed the instructions I'd written earlier for installing the
proprietary NVidia drivers
([URL="http://ubuntuforums.org/showthread.php?t=1665630"]link[/URL])
with some minor tweaks.

Now posting this from Linux Mint 13 (Cinnamon 64-bit) running off the
larger USB and with the NVidia graphics running fine!! :)

Long story short, the same should work on Precise as well, will give it
a shot when I have some time and report... But Cinnamon is such a
blessing (over Unity) that I'm tempted...  :P

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https://bugs.launchpad.net/bugs/993907

Title:
  [nvidia GT 240] no desktop after X started

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