For everyone's benefit, there is away around this (and maybe works with other 
wms?):
    bash -c "sleep 2; compiz --replace"

put this into /etc/X11/Xsession.d/44x11-nvidia-settings

# This file is sourced by Xsession(5), not executed.
# Setup nvidia settings

NVIDIASETTINGSRC="$HOME/.nvidia-settings-rc"
NVIDIASETTINGS=/usr/bin/nvidia-settings
NVIDIAMODULE="$(grep nvidia /proc/modules | cut -d ' ' -f 1)"

if [ "x$NVIDIAMODULE" == "xnvidia" -a \
     -x "$NVIDIASETTINGS" -a \
     -r "$NVIDIASETTINGSRC" ] ; then
    $NVIDIASETTINGS --config="$NVIDIASETTINGSRC" --load-config-only
fi

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to nvidia-graphics-drivers in Ubuntu.
https://bugs.launchpad.net/bugs/600178

Title:
  Screen tearing when dragging window, in videos and other large screen
  redraws (on nVidia GPU)

To manage notifications about this bug go to:
https://bugs.launchpad.net/compiz/+bug/600178/+subscriptions

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