Re: 169.04 BUG: The 7 series multi core bug still exsists.
I wasn't trying to find out whether it was a bug or not. Nvidia have already admitted that it is a bug in their driver. Did you not read anything at the Ubuntu forums? Not even the first post? You're quite wrong in everything you've said, there wasn't much consideration in your reasoning...
Ok onto the bug. It only got worse installing the 169.04 with the flashes being much more consistent, every half a minute or so. However earlier yesterday I installed XGL(-server) through Synaptic to try resolve this bug by not using nvidia's AIXGL. Restarting my system I had a glitch after logging in where a full screen single coloured layer covered everything except the mouse and flame effect on menus when closing. I then rebooted, logged in in safe mode and removed removed XGL. I'm back on AIXGL and I haven't had a single problem as yet (9 hours).
This has to be a big hint in resolving this. Installing XGL must have configured something that was mis-configured with nvidia's AIXGL, unless of course the screen flashes and lock-ups return. I will report back in another 24hours.