I have updated to the new 295.53 driver via the normal ubuntu precise update process yesterday so it must have been rolled out to the repositories....unfortunately it has not resolved my problem. If I login to 3D unity I just get a black screen with a movable cursor. Gnome3 does however work which is how I'm getting by right now. My card is an NVIDIA GEFORCE 7100 /nforce 6300i.
This is so frustrating...! Much longer and I'll probably downgrade to 11.10 which worked fine.