Thank you for the help. If anyone else is having this problem, I have
found a temporary workaround by disabling powernowd. Add "exit 0"
(without the "") right below #! /bin/sh of /etc/init.d/powernowd.
Reboot.

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[nvidia-glx-legacy] GeForce2 Go + Nvidia driver causing system freezes (Xid)
https://bugs.launchpad.net/bugs/134310
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