I was able to fix this as well.
# Completely remove nvidia-glx-new
# Remove nvidia-kernel-common (this also removes linux-restricted-
modules), (I am not sure if step 2 is required)
# install build-essentials
# Download the Nvidia beta driver that came out on April 10. You can get
it here
# hit ctrl + alt + f1 to break out of gnome
# "sudo /etc/init.d/gdm stop" to shutdown the X server
# sudo sh NVIDIA-Linux-x86-173.08-pkg1.run to install the driver. If it
asks you to update you're xorg.conf file, let it.
# Reboot. ("sudo reboot") You should now be able to enable Desktop
effects.
Detailed here: <a href="http://blog.gpowered.net/2008/04/fixing-
nvidia-8600-gt-on-hardy-heron.html">http://blog.gpowered.net/2008/04
/fixing-nvidia-8600-gt-on-hardy-heron.html</a>
--
nvidia-glx-new driver displays white screen of death
https://bugs.launchpad.net/bugs/208718
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