I'm having the same problem but with regular Ubuntu 10.04 (amd64).  The
low graphics dialog intermittently shows up, but doing a "sudo
/etc/init.d/gdm restart" from the console fixes it.  When it fails, the
Xorg.0.log says that it can't find the nvidia driver in the kernel, but
somehow restarting gdm fixes it.

$ lspci | grep VGA
03:00.0 VGA compatible controller: nVidia Corporation C79 [GeForce 9400M G] 
(rev b1)


$ dpkg -l | grep nvidia
ii  nvidia-173-modaliases                173.14.22-0ubuntu11                    
         Modaliases for the NVIDIA binary X.Org drive
ii  nvidia-96-modaliases                 96.43.17-0ubuntu1                      
         Modaliases for the NVIDIA binary X.Org drive
ii  nvidia-common                        0.2.23                                 
         Find obsolete NVIDIA drivers
ii  nvidia-current                       195.36.15-0ubuntu2                     
         NVIDIA binary Xorg driver, kernel module and
ii  nvidia-current-modaliases            195.36.15-0ubuntu2                     
         Modaliases for the NVIDIA binary X.Org drive
ii  nvidia-settings                      195.36.08-0ubuntu2                     
         Tool of configuring the NVIDIA graphics driv

-- 
Lucid Kubuntu: garbled splash screen and random failures to start X
https://bugs.launchpad.net/bugs/568382
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which is subscribed to nvidia-graphics-drivers in ubuntu.

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