This bug was fixed in the package nvidia-settings - 260.19.21-0ubuntu3

---------------
nvidia-settings (260.19.21-0ubuntu3) natty; urgency=low

  * Drop patch debian/patches/06_layout_drop_down.patch: Causes regression
    when used with unity.
    (Closes LP: #692677, reopens #604525)
 -- Bryce Harrington <br...@ubuntu.com>   Mon, 03 Jan 2011 13:08:19 -0800

** Changed in: nvidia-settings (Ubuntu)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/692677

Title:
  Desktop login to unity leads to hang and compiz crash when X Server Display 
Confirmation is clicked on

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