I also confirm the bug.
Unfortunately not even the workaround with the 30s delay does work for me.
Setup:
Ubuntu 8.10 amd64 on a Thinkpad T61p 
NVIDIA Driver Version: 177.82
Quadro FX 570M

I cannot use the logout feature as I have to force reboot afterwards!
I also cannot reboot X Server by using ctrl+alt+backspace, as I will not get 
back to login again.

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[G86GL] Latest NVIDIA drivers: X hangs with blank screen after logout.
https://bugs.launchpad.net/bugs/258357
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