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[Bryce <zyzzyx1@xxxxxxxxx>]

Just wanting to add some experiences with (what I think is) the same
problem. GeForce 9600 on 10.04 AMD64. After upgrading from 9.04 I
started having severe framerate loss mainly when switching desktops with
compiz enabled. I can confirm that delaying the start of nvidia-settings
resolves the issue until I start opening many windows, and then it
reappears, even if I haven't launched nvidia-settings yet.

The more windows open, the worse the problem is.
It seems to affect all compiz actions that zoom the screen: the magnifier, expo, desktop cube, etc.
Killing the window decorator always resolves the problem, but with any window decorator running, it starts again.

-- 
[Lucid] Loading nvidia-settings hurts compiz performance
https://bugs.launchpad.net/bugs/574069
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which is subscribed to nvidia-settings in ubuntu.