I'm running mm-sources-2.5.66-r1 just fine, and the new nvidia drivers seem to compile, but don't work. I reverted to the earlier 1.0.4x drivers and am OK. Your tip about re-compiling modules-init-tool after modutils saved me a major headache with the upgrade I did this morning - thanks so much, Chris.
Usually with every update for modutils, they will also update module-init-tools, at least as far as I've noticed. The problem is that they dont always want to emerge in the proper order, so it's something to keep an eye for anyway.
I'm not going to have time to test out the new nvidia 1.0.4x drivers until the weekend, but hopefully by then someone else will have resolved everything! Again, thanks for your help.
I still havent tried out more than glxgears, but I couldnt get the initial release of the nvidia-kernel-1.0.4349 working either. Is this the one you are trying? If so, do an `emerge sync` and then try the nvidia-kernel-1.0.4349-r1, this one is working fine (thus far) for me, wheras the initial package displayed the same symptoms as yourself. The only difference is that they added some patches especially for 2.5.66 kernels.
-Chris I
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