Started getting the "Display driver stopped responding and has recovered" a few times a day after updating my nvidia drivers a few months ago. Reloaded the old drivers and it stopped. Just updated to the newest drivers, 295.73, 3 days ago and so far so good. Was it the drivers and has nvidia fixed it???
After reading this post in the MS forums I'm still not totally convinced it was the drivers.
"Based on some research I've done on this topic, I learned that with certain video cards, Windows 7's power saving settings reduce the voltage to the video card too much when it's idle.
Many 3D cards require a minimum voltage to be stable, but when "idle", they are basically asleep so everything should be ok.
However, now that so many apps are "hardware or video accelerated" (like Flash, Quicktime, Java, Firefox 4, IE9), the video card is being used when it's in "idle mode" and under-voltage.
The only way to fix this is to tweak advanced settings using 3rd party tools (and possibly fry the video card), or wait for MS to patch this, if ever."
Has anyone tried any of these MS recommendations?
http://support.microsoft.com/kb/2665946
Method 3: "Increase the GPU processing time by adjusting the Timeout Detection and Recovery registry value" also seems plausible.