Comment 67 for bug 703553

The changes that were reverted in 2.6.35-25.44 solved graphics issues for nVidia cards too, as I suspected. I was able to telinit 3 and install the drivers against this kernel and everything is working fine now. It was useless to open bug #705596 since it was really related to this one (probably it was the same issue), but thanks to Steve for (unknowingly) fixing it! :)