I noticed the improvement after a recent upgrade, too. As for now, I am
using this configuration:

nvidia-glx-new: 169.12+2.6.24.13-19.42
xserver-xorg-core: 2:1.4.1~git20080131-1ubuntu9.2
linux-image-2.6.24-19-generic: 2.6.24.19.34
linux-restricted-modules-generic: 2.6.24.19.21

However, I am still not using Compiz, because freezes didn't go away but
became something else which suddenly (after a short "flash") lets me
with a perfectly working mouse but a dead keyboard and X server. Even
power button doesn't work anymore.

-- 
nvidia with compiz and with dual core freeze
https://bugs.launchpad.net/bugs/151382
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