The reason it says your driver is VESA and your resolutions are capped
to 1280 is because you're running the -vesa video driver.  It doesn't do
RANDR either, so that likely is why you see only one monitor enabled.
It may be running -vesa because of nomodeset being specified.

So really the question is why is it not loading -nouveau.


** Package changed: nvidia-graphics-drivers (Ubuntu) => 
xserver-xorg-video-nouveau (Ubuntu)

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https://bugs.launchpad.net/bugs/952574

Title:
  Ubuntu 12.04 beta 1 won't boot off USB key with NVidia GTX 560

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