It's all software/drivers, because my old laptop does far more complex animations in Linux without a problem which has an older/weaker Intel GPU.
YES! This is what's so frustrating! I've used linux with my older laptop that handles these animations fine. How many windows do you use Expose with? I'm running BetterTouchTool, Adium, gfxCardStatus, ClipMenu, Alfred, and Mobile Air Server (for MobileMousePro for my iPod Touch) in the tray as well Mail.app, iTunes, and like 30 tabs of Google Chrome. I can selectively close each App and see if anythings causing it. There is nothing that seems like its taking up any CPU (out of a 100%, I typically have 95% idle...).
Do you think that maybe my update went wrong? It says I am running 10.6.5 on the "Get Info" window.
Also another issue: Have you ever tried using dual monitors? Using Nvidia with the dual monitors is really slow too. What I have to do to obtain normal performance is disable BeamSync.