Turning composite off works for me also.
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gnome-terminal does not start when using xinerama and nvidia
https://launchpad.net/bugs/58232
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desktop-bugs@lists.ubuntu.com
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I am trying to get rdesktop working with the same symptoms, but I am
running the latest drivers from nvidia.
(II) NVIDIA dlloader X Driver 1.0-9629 Wed Nov 1 19:31:54 PST 2006
So even with the latest version of the drivers doesn't fix the problem.
Am about to try turning composite off.
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g
