I am experiencing this same problem.  I am re-installing usplash now (I
removed it in an attempt to make things work/get a better view of the
problem).

What I experience when I've configured xorg to use the nvidia driver is
that my display goes blank.  I am unable to switch to any other virtual
consoles, and I am unable to kill X.  I have not tried to access the
machine via the network (I could), but a ctrl-alt-del does reboot the
machine.  This is repeatable as long as I have nvidia as the configure
video driver.  Once I switch back to nv, everything works fine.

I notice that the nvidia kernel modules is loaded at all times,
regardless of the configured xorg driver.

I'm running an updated edgy (32-bit intel).  Let me know what further
information I can provide to help solve this problem.

-- 
breaks display
https://launchpad.net/bugs/59433

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