Mac Pro w/ Lion Having Issues

Every since I upgraded my early 2009 Mac Pro 2.66 Quad-core Xeon, I've been having some strange issues.
For example, my accounts were set to log out after a certain amount of time of inactivity. By the time the account logged out, my display would have gone to sleep. When I woke my display to login by clicking the mouse or pressing a key on the keyboard, my display would only show about a quarter of an inch around the mouse pointer. When I further moved the mouse pointer, the display only drew where the pointer had gone.
Now my accounts simply lock after a period of inactivity. When I unlock the account, the translucent menu bar on the top of the screen shows a different desktop picture than the rest of the screen. When the desktop either changes or I change to another workspace, the menu bar will change also and match the rest of the screen.
Also, I've been having a lot of issues with my DVD program accepting the disks that are loaded into the player. The only way to get the DVD player to accept the DVD is to restart the computer (logging out works sometimes, but not all of the time.)
On a different note, my Mac Pro does not go to sleep by itself and hasn't since the summer of 2009. I've tried everything including turning all network connections off -- nothing has helped. I have to put my Mac Pro to sleep manually. Strangely, my Mac Pro sleeps just fine with Windows 7. Hmmm...
I've performed about three clean installs of Lion hoping that would resolve the issues I'm experiencing. Clean installs didn't help.
I wonder if maybe my video card is getting old and causing some of these issues -- particularly those issues related to the display.
Below are my specs:
Mac Pro
Early 2009
Processor: 2.66 GHz Quad-Core Intel Xeon
Memory: 8 GB 1066 MHz DDR3 EEC
Graphics: NVIDIA GeForce GT 120 512 MB
Software: OS X Server Lion 10.7.2 (11C74)

That sounds like several different issues, and some of them pre-date Lion. Upgrading is unlikely to ever solve pre-existing problems and more likely to further exacerbate them.
One the 'no sleep' problem. Do you mean the display or the hard disk sleep? I'm assuming you've already looked at the settings in Energy saver. It sounds to me like you have something running in the background that is preventing the hard disk from sleeping. Lots of programs can do this, including iTunes, Transmission or anything that causes hard disk activity. If you can't think of anything that is obviously running, have a look in your login items ( > System Preferences > Users & Groups | Login Items) for some background process (little snitch? clamxav? or anything that scans your system).

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