Comment 6 for bug 587508

I FOUND A WORK-AROUND HERE: https://bugs.launchpad.net/ubuntu/+bug/573455

Here are the details:

1) Download the correct driver from nvidia web page (I couldn't get it fixed with Ubuntu driver at any way)
2)Purge nvidia packages: sudo apt-get purge nvidia-*
3) Create the file "/etc/modprobe.d/nvidia-graphics-drivers.conf" with the following contents:
blacklist vga16fb
blacklist nouveau
blacklist lbm-nouveau
blacklist nvidia-173
blacklist nvidia-96
blacklist nvidia-current
blacklist nvidiafb
4)create or adjust the /etx/X11/xorg.conf file to:
Section "Device"
    Identifier "Device0"
    Driver "nvidia"
    VendorName "NVIDIA Corporation"
EndSection
5) reboot (You can also unload nvidia modulos and the others that I put in blacklist with command "modprobe -r module", example: modprobe -r nouveau
6) If you restarted it will tell you that it can't start X ( low graphics mode ) , then choose a text based console login
(if it does start in X, just press ctrl-F1, log yourself in and call "sudo service gdm stop" or "sudo stop gdm"

7) run the nvidia installer and when it asks to run nvidia-x-config, answer yes
To run the nvidia installer, you should go to the folder with driver (ej: cd Downloads). Change the installer permissions to be executable (chmod +x fileoftheinstaller.sh), execute the installer (sudo ./fileoftheinstaller.sh)

8) Restart, it should start xorg automatically