I've had the exact same problem. You haven't set up your gfx driver correctly. I don't know of how to switch the 'Desktop Effects' setting back off (I searched for that for a little while) so what you're going to have to do is remove ~/.kde4
What I suggest is this, go into a console and type:
Code:
mv ~/.kde4 ~/.kde4-backup
Then logout and re-login to KDE. This will force KDE to recreate .kde4 and won't include Desktop Effects. You'll lose all of your customization (all the KDE settings will go back to default) but so far I don't know of a better way. This is why I'm recommending you just rename the folder rather than delete it. Someone might come along and give you better advice! 
Note: if you had any torrents downloading, you can still find them in ~/.kde4-backup/share/apps/ktorrent (if you used KTorrent) Just copy that back over to your .kde4 folder and you'll be fine.
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