Following days of experiments, here are the results:

1. Default options do not help
2. Disabling/erasing .nvidia-settings-rc doesn't help
3. Option 'UseCompositeWrapper' doesn't help

I've run out of ideas, and thereby am forced to use 'nv' until any
progress/change. ):

Maybe the bug isn't in NVIDIA itself, but in it's combination with Xorg
7.3. btw, Xorg states it's a pre-release and is not supported by
original maintainers in any way; and we have that in LTS (!).

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gdm_slave_xioerror_handler: Fatal X error
https://bugs.launchpad.net/bugs/152648
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