I upgraded to Gutsy Beta from Feisty and experienced the same problem. I
noticed it significantly degrading application performance. OpenOffice
would slowly refresh it's interface when simply switching windows. The
same slow interface is experienced with Kaffeine and trying to watch
video in Kaffeine would cause Xgl to show 70-80% CPU usage in System
Monitor, with the video still stuttering. This is all with Desktop
Effects disabled.

Uninstalling xserver-xgl fixed all these issues.

I'm using an nVidia FX5600.

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[Gutsy] XGL halves nvidia driver 100.14.11 performance
https://bugs.launchpad.net/bugs/136650
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