Nvidia crash after kernel update to .40 on ubuntu 12.04

[M.Y.]

I installed the latest kernel updates (.40) and after restarting the computer, when it booted to the login screen it was displaying 640x480. I had to boot the previous kernel (39) to get the normal dual screen high res setup working again

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: xorg 1:7.6+12ubuntu2
ProcVersionSignature: Ubuntu 3.2.0-39.62-generic-pae 3.2.39
Uname: Linux 3.2.0-39-generic-pae i686
NonfreeKernelModules: nvidia
.proc.driver.nvidia.gpus.0: Error: [Errno 21] Is a directory: '/proc/driver/nvidia/gpus/0'
.proc.driver.nvidia.registry: Binary: ""
.proc.driver.nvidia.version:
 NVRM version: NVIDIA UNIX x86 Kernel Module 304.88 Wed Mar 27 14:31:12 PDT 2013
 GCC version: gcc version 4.6.3 (Ubuntu/Linaro 4.6.3-1ubuntu5)
.proc.driver.nvidia.warnings.fbdev:
 Your system is not currently configured to drive a VGA console
 on the primary VGA device. The NVIDIA Linux graphics driver
 requires the use of a text-mode VGA console. Use of other console
 drivers including, but not limited to, vesafb, may result in
 corruption and stability problems, and is not supported.
.tmp.unity.support.test.0:

ApportVersion: 2.0.1-0ubuntu17.1
Architecture: i386
CompizPlugins: [core,composite,opengl,compiztoolbox,decor,vpswitch,snap,mousepoll,resize,place,move,wall,grid,regex,imgpng,session,gnomecompat,animation,fade,unitymtgrabhandles,workarounds,scale,expo,ezoom,unityshell]
CompositorRunning: compiz
Date: Mon Apr 15 17:02:26 2013
DistUpgraded: 2012-09-04 16:12:00,809 DEBUG enabling apt cron job
DistroCodename: precise
DistroVariant: ubuntu
DkmsStatus:
 nvidia-current, 304.88, 3.2.0-40-generic-pae, i686: installed
 nvidia-current-updates, 304.88, 3.2.0-39-generic-pae, i686: installed
 nvidia-current-updates, 304.88, 3.2.0-40-generic, i686: installed
ExtraDebuggingInterest: Yes, if not too technical
GraphicsCard:
 NVIDIA Corporation GF106GL [Quadro 2000] [10de:0dd8] (rev a1) (prog-if 00 [VGA controller])
   Subsystem: Hewlett-Packard Company Device [103c:084a]
InstallationMedia: Ubuntu 11.04 "Natty Narwhal" - Release i386 (20110427.1)
JockeyStatus:
 xorg:nvidia_current - NVIDIA accelerated graphics driver (Proprietary, Disabled, Not in use)
 xorg:nvidia_current_updates - NVIDIA accelerated graphics driver (post-release updates) (Proprietary, Enabled, In use)
 xorg:nvidia_experimental_304 - NVIDIA accelerated graphics driver (**experimental** beta) (Proprietary, Disabled, Not in use)
 xorg:nvidia_experimental_310 - NVIDIA accelerated graphics driver (**experimental** beta) (Proprietary, Disabled, Not in use)
MachineType: Hewlett-Packard HP Z220 CMT Workstation
MarkForUpload: True
ProcEnviron:
 TERM=xterm
 PATH=(custom, no user)
 LANG=en_US.UTF-8
 SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.2.0-39-generic-pae root=UUID=26662b8b-adf3-4d04-9b70-bf0c0ed541c2 ro quiet splash vt.handoff=7
SourcePackage: xorg
UpgradeStatus: Upgraded to precise on 2012-09-04 (223 days ago)
dmi.bios.date: 05/03/2012
dmi.bios.vendor: Hewlett-Packard
dmi.bios.version: K51 v01.02
dmi.board.asset.tag: CZC23440V7
dmi.board.name: 1790
dmi.board.vendor: Hewlett-Packard
dmi.chassis.asset.tag: CZC23440V7
dmi.chassis.type: 6
dmi.chassis.vendor: Hewlett-Packard
dmi.modalias: dmi:bvnHewlett-Packard:bvrK51v01.02:bd05/03/2012:svnHewlett-Packard:pnHPZ220CMTWorkstation:pvr:rvnHewlett-Packard:rn1790:rvr:cvnHewlett-Packard:ct6:cvr:
dmi.product.name: HP Z220 CMT Workstation
dmi.sys.vendor: Hewlett-Packard
version.compiz: compiz 1:0.9.7.12-0ubuntu1
version.libdrm2: libdrm2 2.4.39-0ubuntu0.1
version.libgl1-mesa-dri: libgl1-mesa-dri 8.0.4-0ubuntu0.4
version.libgl1-mesa-dri-experimental: libgl1-mesa-dri-experimental N/A
version.libgl1-mesa-glx: libgl1-mesa-glx 8.0.4-0ubuntu0.4
version.nvidia-graphics-drivers: nvidia-graphics-drivers N/A
version.xserver-xorg-core: xserver-xorg-core 2:1.11.4-0ubuntu10.12
version.xserver-xorg-input-evdev: xserver-xorg-input-evdev 1:2.7.0-0ubuntu1.2
version.xserver-xorg-video-ati: xserver-xorg-video-ati 1:6.14.99~git20111219.aacbd629-0ubuntu2
version.xserver-xorg-video-intel: xserver-xorg-video-intel 2:2.17.0-1ubuntu4.3
version.xserver-xorg-video-nouveau: xserver-xorg-video-nouveau 1:0.0.16+git20111201+b5534a1-1build3

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.