I had the exact same problem (on nVidia FX 5700) connected with Synaptic
displaying very few packages (about 1100 total). That made me take a
look at System -> Administration -> Software Sources and it turn out
that all the repos were disabled there. I have no idea why they were
disabled (maybe because i had no internet connection during
installation) but the point is that enabling them solved the problem and
the Appearence -> Visual Effects nicely installed the drivers
automaticaly then.

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nVidia Drivers Installing In Ubuntu 7.10 "Gutsy Gibbon" Failiure In Procediure.
https://bugs.launchpad.net/bugs/153756
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