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I know more people with this issue: After we upgraded to 12.04, we can't log out with Nvidia drivers enabled, I got a blank screen, sometimes with fuzzy words (like X server crash), and after some seconds the PC reboots. If I uninstall Nvidia drivers, I can log out without problems. I can't find any fix, I have tried with current and current-updates. Anyone have solved this? It's a bug? Thanks

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The Nvidia drivers seem to have problems reloading during X server restart.

I faced this very same issue myself, using a GT520 card. The answer to me at least was posted on this forum:

For now, you can go around the issue by setting the Nvidia driver to persistent mode:

nvidia-smi -pm 1

Fixed it for me.

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