Could you please try again removing the .run package provided driver,
rename/move xorg.conf reboot and install nvidia binary drivers from
jockey? The newer versions of xorg don't need the xorg.conf and things
should work automagicly without it.

** Package changed: xorg (Ubuntu) => nvidia-graphics-drivers (Ubuntu)

-- 
Using NVIDIA drivers in Lucid causes display shift and flicker, or extreme 
slowness with compiz
https://bugs.launchpad.net/bugs/521596
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which is subscribed to nvidia-graphics-drivers in ubuntu.

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