I can confirm this bug.
I have GeForce 8600m GT on Acer ASPIRE 5920G laptop and have the
identical problem. (low resolution with nouveau, black screen with
nvidia-173 and only command line with nvidia-current (260)).
The same laptop with the same card works perfectly with Lucid using
nvidia-current (195?) driver.
** Changed in: nvidia-graphics-drivers (Ubuntu)
Status: Invalid => Confirmed
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Nvidia GeForce 8600M GT doesn't work with nvidia-current 260
https://bugs.launchpad.net/bugs/661248
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