according to Sam Tygier the options to bypass this bug are:-

disable a core (kernel boot up parameter)
downgrade drivers (to Feisty)
switch to nv (unrestricted open source driver, but with no 3D acceleration)

I have just switched to the nv driver. But its a nasty situation, its
been years since I have 3D or graphics issues, I just hope it does not
put too many off using Ubuntu. Maybe its just too soon to have a 3D
desktop as the default.

-- 
Random NVidia Proprietary Driver Lock-Ups with dual core + 7300
https://bugs.launchpad.net/bugs/145112
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