Comment 6 for bug 409640

I'm experiencing the same problem.
To specify further, video backed by xine (like kaffeine DVB) don't experience the problem immediately. When gstreamer backed video (Totem) is started, all of it flips (both xine and gestreamer backed playback). Odd thing is, simply starting the nvidia-settings app solves the problem, until a new gstreamer backed video is started.

Indeed, when using the hue parameter for XVideo in de nvidia-settings, the effect can be replicated by putting it to + or - 1000. When the nvidia-settings app is allready running, changing the hue and putting it backt to 0 brings everything back to normal.

I'm running a Karmic AMD64 as well.