I also have this problem using Nvidia (EN) 8400GS, Natty desktop i386 
"Additional Drivers" Shows "This driver is activated but not currently in use", 
I have tried both "(Version 173)" and "(Version current) [Recommended]".
I have full Unity desktop, and "Nvidia X server Settings" program seems to be 
connected to graphics adapter.
lspci: 03:00.0 VGA compatible controller: nVidia Corporation G98 [GeForce 8400 
GS] (rev a1)

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https://bugs.launchpad.net/bugs/771788

Title:
  nVidia driver activated and apparently being used but reported as not
  being used by jockey-gtk

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