Is this still an issue? The GUI was saying it failed even if activation
worked (which appears to be happening in these logs) for a bit but that
problem should be fixed by now. I am closing this as fix released, but
if it is not fixed please change the status back.

** Changed in: nvidia-graphics-drivers (Ubuntu)
       Status: New => Fix Released

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lucid beta 2 offers me nvidia proprietary driver- it fails
https://bugs.launchpad.net/bugs/566195
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