I have a new Dell L401X with GeForce GT 420M with the same issue.

After Installing the NVidia-propietary drivers using the nvidia-installer 
(NVIDIA-Linux-x86-260.19.21.run) the only way to having a nonblank screen is by 
using an external monitor through the HDMI port.
I have tried and wasted several days with this problem. It seems as if 
xorg.conf is never well configured by nvidia-xconfig, so whn trying to run 
nvidia-settings (as root) it never detects the two monitor, just the external.

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https://bugs.launchpad.net/bugs/656330

Title:
  Nvidia Beta 260 driver breaks 330m cards

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