This seems be fixed in the latest nvidia-current release:
nvidia-graphics-drivers (304.43-0ubuntu1) quantal; urgency=low
* debian/rules:
- Add support for X ABI 13.
* New upstream release (LP: #1037483):
- Added support for the following GPUs:
o GeForce GTX 660 Ti
o Quadro K5000
o Quadro K5000M
o Quadro K4000M
o Quadro K3000M
o NVS 510
- Fixed a bug that caused pre-release versions of
X.Org xserver 1.13 to crash when certain GLX
operations were performed, such as when starting
Firefox.
- Fixed a bug that caused VDPAU to hang when
expanding the YouTube Flash Player.
-- Alberto Milone <alberto.milone@canonical.com> Tue, 28 Aug 2012 12:47:45 +0200
** Changed in: nvidia-graphics-drivers (Ubuntu Quantal)
Status: Confirmed => Fix Released
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https://bugs.launchpad.net/bugs/1037896
Title:
Starting Firefox kills xserver immediately when using 2D desktop
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