[precise] Proprietary nVidia driver causes kernel panic

[Eggsome]

Hi Devs,
I'm using 12.04 (beta2) and I get a kernel panic (flashing Caps + Scroll lock) after about 20mins of use if I activate the fancy non-open source nVidia driver.
lspci reports that I have:
02:00.0 VGA compatible controller: NVIDIA Corporation G71GL [Quadro FX 3500] (rev a1)
I'm running on an Intel 5000X series motherboard and have a Xeon CPU if it makes any difference.

I have not customized this installation at all.

From previous experience I suspect that it may be a hardware conflict, but that doesn't make much sense since it's a pre-built IBM workstation - they should test everything in concert. (It's an IntelliStation MT:9228)
Also binary linux drivers are provided by IBM, but only for RedHat and Suse - I did not install them.

This PC never crashes if I stick with the "nouveau" driver.

I have attached the full output of lspci and /var/log/kern.log

[Eggsome (eggsome)]

Bug persists after format and reinstall with the release version of precise.