Ok, I think I've found the problem.

First of all if you install the driver from EnvyNG you will have to
remove it from EnvyNG. Restricted Drivers Manager is not aware of what
EnvyNG does, therefore it messed up things a bit.

Please run EnvyNG again and uninstall the driver from there.

Then close EnvyNG and type:
sudo apt-get install nvidia-glx-new

Set the driver to "nvidia" instead of "nv" in your /etc/X11/xorg.conf

Type:
sudo rmmod nvidia

and reboot.

-- 
2.6.24-20-generic upgrade Nvidia Problem 
https://bugs.launchpad.net/bugs/251644
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