Unfortunately, this did not work for me. Here is what I put into the options 
file: 
#fix for nvidia problem
options nvidia_new NVreg_Mobile=1 NVreg_RegistryDwords="PerfLevelSrc=0x2222"

Any problem with that that you can see?

I removed this line from the options file and am trying your other
suggestion of creating the nvidia-kernel-nkc file with that line. One
question I have about it is whether your system is set up to look for
this file while mine may not be. I have no idea what I would need to do
to cause the system to look for it, if it is a problem.

-- 
laptop video output garbage
https://bugs.launchpad.net/bugs/234292
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