I see the same issue on my machine. It has started happening after I
migrated to a new disk. I installed 12.04.1 from scratch and copied my
old home directory over it.

Note that I use nvidia-current, not xserver-xorg-video-nouveau (original
bug reporter uses nvidia-current too IMO).

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https://bugs.launchpad.net/bugs/1035507

Title:
  xorg cannot find graphics card; also does not default to low graphics
  mode

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