Is this still an issue? The GUI was saying it failed even if activation
worked (it does require a reboot to enable effects anyway after
activation) but that problem should be fixed by now. I am closing this
as fix released, but if it is not fixed please change the status back
and sorry for the trouble!

** Changed in: nvidia-graphics-drivers (Ubuntu)
       Status: New => Fix Released

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Not able to change "Visual Effects" in "Appearance"
https://bugs.launchpad.net/bugs/563466
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