Comment 5 for bug 596373

nvidia driver problem solved: it did not have enough memory.

I always got
"Failed to initialize the NVIDIA graphics device PCI:2:0:0. " with falling back to low resolution, no matter which xorg.conf file I used.

vmalloc assigned only 100 mb by default, after updating to kernel 2.6.32-24.

QUICK FIX:
adding vmalloc=192M at the kernel start line

sudo nano /etc/default/grub
add line
GRUB_CMDLINE_LINUX="acpi_enforce_resources=lax vmalloc=192M"
and run
sudo update-grub

This solved all my nvidia problems I had when updating lucid lynx!

credits to:
http://www.pclinuxos.com/forum/index.php?topic=71334.0