I'm facing the same bug on Ubuntu 12.04 LTS 32 bits.
I'm not able to run a console within the desktop. The desktop crashes.
I noticed that no xorg.conf solves the problem concerning use of konsole by 
example.
I'm running kernel version 3.2.0-48 with gnome-shell

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https://bugs.launchpad.net/bugs/1037610

Title:
  xorg nvidia crashes, ubuntu 12.04 LTS 64 bit

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