Since this issue has been acknowledged by nvidia and fixed in their
latest drivers (supposedly), I'm going to mark this as resolved.
Officially it was known by nvidia as "a regression on 7 series gpu's
that could cause artifacting and non-updating screens"

** Changed in: firefox (Ubuntu)
       Status: Incomplete => Fix Released

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Firefox occasionally won't update it's display (Jaunty and Intrepid)
https://bugs.launchpad.net/bugs/306647
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