Switching between users works perfectly well in Ubuntu 12.10.
I tested both the guest-account and a second user account, and 
fast-user-switching from the applet works well. The display flashes couple of 
time due to mode change, but the up-coming Wayland display manager will fix 
that too.
I have Nvidia GeForce GT 525M graphics chipset with these drivers:
$ dpkg -l | grep -i nvidia
ii  nvidia-current  304.64-0ubuntu1~quantal~xup1  i386  NVIDIA binary Xorg 
driver, kernel module and VDPAU library
ii  nvidia-current-dev  304.64-0ubuntu1~quantal~xup1  i386  NVIDIA binary Xorg 
driver development files
ii  nvidia-settings  304.64-0ubuntu1~quantal~xup1  i386 Tool for configuring 
the NVIDIA graphics driver

I just can't wait for Wayland display manager.

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https://bugs.launchpad.net/bugs/160264

Title:
  [nvidia] compiz displays white screen when locked

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