Black screen after installing NVIDIA driver

[Ciro Santilli 六四事件 法轮功]

16.10 host, 16.04 image to burn, Lenovo Thinkpad T430, NVIDIA NVS 5400M, driver version 367.

Persistent image initially works great, created with GUI.

Driver works fine on host, was already working fine when I was on 16.04 as well.

But then, if I install the nvidia driver from "Additional drivers" GUI, exactly like on host, and reboot, behavior is the same as: http://askubuntu.com/questions/760374/ubuntu-16-04-nvidia-driver-blank-screen

If add nomodeset , it changes behavior but does not fix it: screen is like this https://i.stack.imgur.com/VNCVw.jpg and mouse frozen, but this is likely related, since a boot thing.

lsmod says nvidia tried to load, but failed, possibly because nouveau took over.

lsmod then says nouveau is actually insmodded despite it being blacklisted under cat /etc/modprobe.d/nvidia-367_hybrid.conf