Solution:  Edit the menu properties for Nvidia X Server Settings and
change the "Type" from "Application" to "Application in Terminal."  Then
place "sudo" at the beginning of the "Command Line."  Then when the Menu
option is clicked, a terminal window is openned and you are asked for
the sudo password.  Enter it and the app runs with root privileges.

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nvidia-settings doesn't have permissions to write xorg.conf
https://bugs.launchpad.net/bugs/200868
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