I have found a workaround for me based on Alvara descrition above :)
My hardware is a GeForce 7000M/nForce 610m
The solution is simply to remove the 295.40 module and to replace it with the 295.20 series and perform two tweaks as mentioned above.
1) If you don't have it already done, update your system using the following:
apt-get update && apt-get dist-upgrade
2) apt-get remove nvidia-current nvidia-common
3) Download the driver from http://www.nvidia.co.uk/object/linux-display-amd64-295.20-driver-uk.html
4) Go to a terminal by holding down ALT, TAB & F2 (Any F key from 1-6 should work)
5) execute: lightdm stop
if using kdm, replace light dm with kdm, or if using gdm for display login replace lightdm with gdm.
go to the directory where you downloaded the display driver.
look for NVIDIA-"something".run
6) chmod +x ./NVIDIA-*
7) Make sure you have build-essential installed if not install it with apt-get install build-essential
8) execute " ./NVIDIA-whateverthefilenameis.run" without quotes
9) restart your display with "lightdm start" at the command prompt and choose 2d ubuntu
10) once logged in with unbridled thanks to Alvaro "Effenberg0x0" Leal perform the following steps
- Unchecking "Sync to VBlank" in CCSM/OpenGL Plugin;
- Unchecking "Sync to VBlank" in nvidia-settings (at XServer XVideo Settings and OpenGL Settings)
Reboot, login and hey presto regular unity 3d should now be up and running for you, worked for me :)
I hope this helps some if not all here.