nvidia-current hangs freshly installed systems

[TheSimon]

I've done 3 fresh installs of the 12.04 LTS 64bit system. Durring the setup I've chosen to install 3rd party software and twice to preform update durring the install.

In all 3 cases the PC crashes while trying to start the X server. There is blank screen isntead of

What doesn't work:
1. Recovery loads fine but the Xorg files doesn't povide any usefull info and running startx/lightdm hangs the system again
2. Xorg -configure fails with "Number of created screens does not match number of detected devices." message
3. removing the xorg.conf file brings the nvidia logo instead of blank screen but still hangs the system
4. The system loads fine when lightdm is disabled (from /etc/init/lightdm.conf )
5. The same bug accures when gdm is used instead of lightdm

What does work:
1. Removing the nvidia-current package from recovery and restart.

How to reproduce:
1. Installing the nvidia-current package again prevents the X from loading as before.

Sytem Info:

lsb_release -rd:
Description: Ubuntu 12.04.1 LTS
Release: 12.04

  *-cpu
          description: CPU
          product: Intel(R) Core(TM)2 Quad CPU Q9400 @ 2.66GHz
          vendor: Intel Corp.
          physical id: 4
          bus info: cpu@0
          version: Intel(R) Core(TM)2 Quad CPU Q9400 @ 2.66GHz
          serial: To Be Filled By O.E.M.
          slot: LGA775
          size: 1998MHz
          capacity: 3800MHz
          width: 64 bits
          clock: 333MHz

  *-display
                description: VGA compatible controller
                product: G92 [GeForce 9800 GT]
                vendor: NVIDIA Corporation
                physical id: 0
                bus info: pci@0000:01:00.0
                version: a2
                width: 64 bits
                clock: 33MHz