As of now it is fixed for me now. Problably it is the grub-pc update to
version 1.98+20100804-4ubuntu1
The log includes this :
* Go back to gfxpayload=text by default for Ubuntu 10.10, as the kernel
needs more work to avoid lockups with some video cards
Seems to be the change that fixes it.
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Xorg fails with "NVIDIA(0): Failed to allocate primary buffer: out of memory."
https://bugs.launchpad.net/bugs/607490
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