This problem does still exist. I've even updated all my software
packages first to ensure I have the latest software.

This thread describes everything quite nicely:
http://ubuntuforums.org/showthread.php?t=965180

But basically, if you enable the nvidia drives from the restricted
drivers icon, after the reboot the xserver fails to start with a similar
error: no devices detected and no screens found

I have 2x nVidia 9600GT's in SLI.
I would have liked to use EnvyNG but it seems to also be having problems in 
8.10 :-P

** Changed in: nvidia-graphics-drivers-177 (Ubuntu)
       Status: Invalid => New

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Only can get a command prompt after installing Nvidia 177.80 drivers
https://bugs.launchpad.net/bugs/291897
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