If you're desperate to get stability back (like I was,) try installing the 
295.53-0ubuntu1~precise~xup1 series drivers from 
https://launchpad.net/~ubuntu-x-swat/+archive/x-updates .
I've only had them running for a couple of days, and only watched 2-3 hours of 
HD video since then, but so far no crashes.

What perplexes me is that I have two virtually identical HTPC machines
in the house, and only one of them hit this bug.

Same mobo, same proc, same ram, same video card, same ubuntu.

One plays primarily through XBMC with VDPAU, other through
mplayer+VDPAU.

mplayer+VDPAU box crashed all the time until 295.53 drivers installed.

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https://bugs.launchpad.net/bugs/1005028

Title:
  nvidia: Xorg hangs at 100% CPU when playing video: "fallen off the
  bus"

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