Another side effect other than "Direct rendering = No" is XINERAMA stopped 
working, at least with the nvidia driver. ('xdpyinfo | grep XINERAMA' returned 
nothing. Once I removed 
/etc/X11/Xsession.d/00xserver-xgl_start-server things started working again.

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xserver-xgl on gutsy doesn't work
https://bugs.launchpad.net/bugs/136598
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