Weird Nvida Windows Kernal Mode driver has stopped working

I read a few forums about this issue but mine's different. It doesn't crash or display any error while gaming. It happens when i'm on the desktop exploring. If don't do anything it wont display the error, however, when i start to right click on desktop, it flickers and displays the error "Nvidia Windows Kernel Driver mode driver has stopped responding and recovered" something link that. This also happens when a window is active like when i'm on the Control Panel Window (don't know with other windows, haven't tried yet), It flickers every 10 - 30 secs and display the error. After a few hours of researching and troubleshooting i think finally fixed it by putting the "Peformance Settings to Best Performance". I don't know what caused this. It didnt happen to me before. My Peformance settings was always set to Best appearance until now. Anyone knows the fix to this error? I don't like the appearance set to Best Peformance, it looks like Windows 98 If you experience similar errors like mine, try setting your Performance settings to Best Peformance and post comments here if it works.

note:
By the way, its not a PSU problem my specs are
PSU = Corsair GS600 ( 7 months)
Graphics Card = Palit Geforce GTX 560 OC ( the temps are fine as usual and no overclocking done)

I would probably first look at the connections for the PSU and make sure the Graphics card is seated corrected and all of its connections are secure.

I suppose you have reinstalled the Graphics driver?

What resolution are you running?

I suppose running the Windows Experience Index would cause the system to error? If not, what number do you show for the index on Video?

Do you ever get a warning from Windows, after gaming, about the Video settings needing to be changed?

Originally Posted by Saltgrass

I would probably first look at the connections for the PSU and make sure the Graphics card is seated corrected and all of its connections are secure.

I suppose you have reinstalled the Graphics driver?

What resolution are you running?

I suppose running the Windows Experience Index would cause the system to error? If not, what number do you show for the index on Video?

Do you ever get a warning from Windows, after gaming, about the Video settings needing to be changed?

Yup i re-seated everything. i installed the latest graphics driver (i think it was 296.1 or something)

1920 x 1080 res

No i dont get any warning after gaming.

The error only occurs if i set the Performance Settings to "Best Performance". On the other hand, my current "Visual Settings" under "Performance" settings tab is Custom where in I only ticked the lasted 4 options on the bottom. Just wanna share this info to others who also experience this issue.
I don't know why the error occurs if i set the Performance settings to best performance. Maybe its an OS issue or conflict, 3rd party programs or graphics driver issue (i'm pretty sure its not the gpu driver since this also occured before udpating my gpu driver). Gonna make fresh install of my OS and see if this error persists.