An update for this bug. I installed (with envy) all stable nvidia drivers up to 
the current 169.12, and that did not fixed the problem. 
I performed a clean install of Ubuntu 8.04 (hardy), which uses nvidia 169.12. 
Without any hack, suspend to RAM and resume works perfectly (like it did on 
7.04 - feisty). So the problem may not be with the nVIdia driver per se, but on 
either the main kernel or on  linux-restricted-modules. 

Since this bug will most likely not be fixed, I would strongly recommend
anyone having problems with 7.10 (gutsy) to upgrade to 8.04 (hardy).

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Fails to resume when using Nvidia-glx or Nvidia-glx-new
https://bugs.launchpad.net/bugs/153797
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