Unity 5.10.0 fails to start after NVidia drivers activated - Ubuntu 12.04 x64 Upgrade

[Stanley Bondi]

After upgrading from Ubuntu 11.10 x64 to 12.04 LTS x64 and activating NVidia drivers unity does not start.

Expected: Unity starts and functions similarly to how it did in 11.10

What happened:
Windows are "borderless". UI not responding to keyboard input (able to switch to tty; mouse works).
DISPLAY=:0 compiz --replace in tty1 allows me to open a terminal and open a browser etc. but windows are still borderless.
DISPLAY=:0 unity --replace yields attached error output.
Same thing happens for unity --reset.

HP
AMD dual-core x64
NVidia 7000M

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: unity 5.10.0-0ubuntu6
ProcVersionSignature: Ubuntu 3.2.0-24.37-generic 3.2.14
Uname: Linux 3.2.0-24-generic x86_64
NonfreeKernelModules: nvidia
.proc.driver.nvidia.gpus.0: Error: [Errno 21] Is a directory: '/proc/driver/nvidia/gpus/0'
.proc.driver.nvidia.registry: Binary: ""
.proc.driver.nvidia.version:
 NVRM version: NVIDIA UNIX x86_64 Kernel Module 295.40 Thu Apr 5 21:37:00 PDT 2012
 GCC version: gcc version 4.6.3 (Ubuntu/Linaro 4.6.3-1ubuntu5)
ApportVersion: 2.0.1-0ubuntu6
Architecture: amd64
CompizPlugins: [core,bailer,detection,composite,opengl,decor,regex,compiztoolbox,place,resize,snap,mousepoll,move,gnomecompat,imgpng,vpswitch,grid,session,animation,unitymtgrabhandles,wall,expo,fade,workarounds,scale,ezoom,unityshell]
Date: Fri Apr 27 18:28:25 2012
DistUpgraded: 2012-04-27 16:29:12,673 DEBUG enabling apt cron job
DistroCodename: precise
DistroVariant: ubuntu
DkmsStatus: nvidia-current, 295.40, 3.2.0-24-generic, x86_64: installed
GraphicsCard:
 NVIDIA Corporation C67 [GeForce 7000M / nForce 610M] [10de:0533] (rev a2) (prog-if 00 [VGA controller])
   Subsystem: Hewlett-Packard Company Device [103c:30ea]
InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Release amd64 (20111012)
JockeyStatus:
 xorg:nvidia_current - NVIDIA accelerated graphics driver (Proprietary, Enabled, In use)
 xorg:nvidia_current_updates - NVIDIA accelerated graphics driver (post-release updates) (Proprietary, Disabled, Not in use)
MachineType: Hewlett-Packard HP G6000 Notebook PC
ProcEnviron:
 LANGUAGE=en_ZA:en
 TERM=linux
 PATH=(custom, user)
 LANG=en_ZA.UTF-8
 SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.2.0-24-generic root=UUID=f73fbe05-0f36-414c-8141-3bf72f5c41f1 ro quiet splash vt.handoff=7
SourcePackage: unity
UpgradeStatus: Upgraded to precise on 2012-04-27 (0 days ago)
XorgConf:
 Section "Device"
  Identifier "Default Device"
  Option "NoLogo" "True"
 EndSection
dmi.bios.date: 11/27/2007
dmi.bios.vendor: Hewlett-Packard
dmi.bios.version: F.04
dmi.board.name: 30EA
dmi.board.vendor: Quanta
dmi.board.version: 86.09
dmi.chassis.type: 10
dmi.chassis.vendor: Quanta
dmi.chassis.version: N/A
dmi.modalias: dmi:bvnHewlett-Packard:bvrF.04:bd11/27/2007:svnHewlett-Packard:pnHPG6000NotebookPC:pvrRev1:rvnQuanta:rn30EA:rvr86.09:cvnQuanta:ct10:cvrN/A:
dmi.product.name: HP G6000 Notebook PC
dmi.product.version: Rev 1
dmi.sys.vendor: Hewlett-Packard
version.compiz: compiz 1:0.9.7.6-0ubuntu1
version.ia32-libs: ia32-libs N/A
version.libdrm2: libdrm2 2.4.32-1ubuntu1
version.libgl1-mesa-dri: libgl1-mesa-dri 8.0.2-0ubuntu3
version.libgl1-mesa-dri-experimental: libgl1-mesa-dri-experimental N/A
version.libgl1-mesa-glx: libgl1-mesa-glx 8.0.2-0ubuntu3
version.nvidia-graphics-drivers: nvidia-graphics-drivers N/A
version.xserver-xorg-core: xserver-xorg-core 2:1.11.4-0ubuntu10
version.xserver-xorg-input-evdev: xserver-xorg-input-evdev 1:2.7.0-0ubuntu1
version.xserver-xorg-video-ati: xserver-xorg-video-ati 1:6.14.99~git20111219.aacbd629-0ubuntu2
version.xserver-xorg-video-intel: xserver-xorg-video-intel 2:2.17.0-1ubuntu4
version.xserver-xorg-video-nouveau: xserver-xorg-video-nouveau 1:0.0.16+git20111201+b5534a1-1build2

[Stanley Bondi (sdbondi)]

Reset xorg.conf with nvidia-xconfig with no effect.

[Daniel van Vugt (vanvugt)]

Thank you for taking the time to report this bug and helping to make Ubuntu better. This particular bug has already been reported and is a duplicate of bug 982485, so it is being marked as such. Please look at the other bug report to see if there is any missing information that you can provide, or to see if there is a workaround for the bug. Additionally, any further discussion regarding the bug should occur in the other report. Feel free to continue to report any other bugs you may find.

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.