The issue was actually due to a combination of NVidia 304.XX driver with
linux-image-3.8.0-17-generic. With latest NVidia 304 driver update,
problem is gone.
However this could be good that nvidia-current actually points to
nvidia-310 instead of NVidia-304, but with latest kernel image
NVidia-310 could not install...
** Changed in: linux (Ubuntu)
Status: Confirmed => Fix Released
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https://bugs.launchpad.net/bugs/1166988
Title:
With latest xserver-xorg update, switching to VT does not work anymore
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