unable to start X server with current nvidia drivers

I'm not able to start the X server after installing the nvidia-current drivers (via jockey) on clean Kubuntu 10.10 installation. There is only a terminal login prompt after system boot and I have to delete /etc/X11/xorg.conf and run startx to start the X server. Unfortunately the X server starts in low resolution mode.

ProblemType: Bug
DistroRelease: Ubuntu 10.10
Package: nvidia-current 260.19.06-0ubuntu1
ProcVersionSignature: Ubuntu 2.6.35-22.35-generic 2.6.35.4
Uname: Linux 2.6.35-22-generic i686
Architecture: i386
Date: Thu Oct 21 23:10:25 2010
DkmsStatus: nvidia-current, 260.19.06, 2.6.35-22-generic, i686: installed
GdmLog:
 Error: command ['kdesudo', '--', 'cat', '/var/log/gdm/:0.log'] failed with exit code 1: QInotifyFileSystemWatcherEngine::addPaths: inotify_add_watch failed: No such file or directory
 QFileSystemWatcher: failed to add paths: /home/daemonx/.config/ibus/bus
 Bus::open: Can not get ibus-daemon's address.
 IBusInputContext::createInputContext: no connection to ibus-daemon
 cat: /var/log/gdm/:0.log: No such file or directory
GdmLog1: Error: command ['kdesudo', '--', 'cat', '/var/log/gdm/:0.log.1'] failed with exit code 1: cat: /var/log/gdm/:0.log.1: No such file or directory
GdmLog2: Error: command ['kdesudo', '--', 'cat', '/var/log/gdm/:0.log.2'] failed with exit code 1: cat: /var/log/gdm/:0.log.2: No such file or directory
InstallationMedia: Kubuntu 10.10 "Maverick Meerkat" - Release i386 (20101007)
MachineType: Acer, inc. Aspire 5920G
ProcCmdLine: BOOT_IMAGE=/boot/vmlinuz-2.6.35-22-generic root=UUID=00d907da-f1e7-4345-b8f0-362810e6dc9c ro quiet splash
ProcEnviron:
 LANGUAGE=
 LANG=cs_CZ.UTF-8
 SHELL=/bin/bash
SourcePackage: nvidia-graphics-drivers
dmi.bios.date: 03/14/2008
dmi.bios.vendor: Acer
dmi.bios.version: v1.3811
dmi.board.name: Chapala
dmi.board.vendor: Acer, Inc.
dmi.board.version: Not Applicable
dmi.chassis.type: 1
dmi.chassis.vendor: Acer, Inc.
dmi.chassis.version: N/A
dmi.modalias: dmi:bvnAcer:bvrv1.3811:bd03/14/2008:svnAcer,inc.:pnAspire5920G:pvrNotApplicable:rvnAcer,Inc.:rnChapala:rvrNotApplicable:cvnAcer,Inc.:ct1:cvrN/A:
dmi.product.name: Aspire 5920G
dmi.product.version: Not Applicable
dmi.sys.vendor: Acer, inc.
glxinfo: Error: [Errno 2] No such file or directory
peripherals:

system:
 distro: Ubuntu
 codename: maverick
 architecture: i686
 kernel: 2.6.35-22-generic