Comment 4 for bug 226286

Shut down the Xserver and uninstall the driver from NVIDIA's website since it can cause serious problems with system updates.

Maybe the new restricted modules are not available yet and this doesn't depend on me. If you want a kernel independent solution you can try my new packages (which I hope to upload soon in Ubuntu).

try this:

Add these to your /etc/apt/sources.list:

deb http://ppa.launchpad.net/lrm-envy-hardy/ubuntu hardy main
deb-src http://ppa.launchpad.net/lrm-envy-hardy/ubuntu hardy main

then type:
sudo apt-get update

sudo apt-get install dkms linux-headers-$(uname -r)
sudo apt-get install nvidia-glx-new

(answer yes if it asks you to remove some packages).

Let me know how it goes.