missing nvidia kernel module (nvidia.ko)

[Loom]

After dist-upgrading from edgy to feisty last week X won't start. Also with new kernel 2.6.20-12 today.

Xorg.0.log:
(EE) NVIDIA(0): Failed to load the NVIDIA kernel module!
(EE) NVIDIA(0): *** Aborting ***

Trying to load module manually failed:
>modprobe -v nvidia
FATAL: Could not open /lib/modules/2.6.20-12-generic/volatile/nvidia.ko: No such file or directory

Using package nvidia-kernel-source and compiling works fine. But I won't compile nvidia-kernel for each new kernel, if it is contained in restricted-modules ;)

contents of /lib/modules/2.6.20-12-generic/volatile:
ath_hal.ko fcdsl.ko fcdslslusb.ko fcdslusba.ko fcpci.ko fglrx.ko
fcdsl2.ko fcdslsl.ko fcdslusb2.ko fcdslusb.ko fcusb.ko fxusb.ko

although the nvidia files are in /lib/linux-restricted-modules/2.6.20-12-generic/nvidia:
nv-i2c.o nv-kernel.o nv-vm.o os-interface.o
nvidia.mod.o nv.o os-agp.o os-registry.o

I dont't know how this volatile-directory works, but mount says 'lrm on /lib/modules/2.6.20-12-generic/volatile type tmpfs (rw)'. So this looks like it's virtual, but I were unable to find the source and therefore I dont't know why this nvidia.ko is missing.

Additional Info:
System: Asus A6jm laptop

graphics adapter:
lspci -n:
01:00.0 0300: 10de:0398 (rev a1)
lspci -v:
01:00.0 VGA compatible controller: nVidia Corporation G70 [GeForce Go 7600] (rev a1) (prog-if 00 [VGA])
        Subsystem: ASUSTeK Computer Inc. Unknown device 1232
        Flags: bus master, fast devsel, latency 0, IRQ 16
        Memory at fd000000 (32-bit, non-prefetchable) [size=16M]
        Memory at c0000000 (64-bit, prefetchable) [size=256M]
        Memory at fc000000 (64-bit, non-prefetchable) [size=16M]
        I/O ports at bc00 [size=128]
        [virtual] Expansion ROM at fbfe0000 [disabled] [size=128K]
        Capabilities: [60] Power Management version 2
        Capabilities: [68] Message Signalled Interrupts: Mask- 64bit+ Queue=0/0 Enable-
        Capabilities: [78] Express Endpoint IRQ 0

[Loom (loom)]

I used current versions:
package version
linux-restricted-modules-2.6.20-12-generic 2.6.20.3-12.11
linux-restricted-modules-generic 2.6.20.12.8
linux-restricted-modules-common 2.6.20.3-12.11
linux-image-2.6.20-12-generic 2.6.20-12.19
linux-image-generic 2.6.20.12.8

[Tareeq (spock-rock)]

I can confirm this, bug I keep getting this error as well when trying to use feisty....

[Loom (loom)]

Maybe this is the same:

Bug #87986:
[Xubuntu Feisty] nvidia-glx from the repository doesn't work
https://launchpad.net/ubuntu/+source/linux-restricted-modules-2.6.20/+bug/87986