I had the same problem. After a complete re-install I installed the nvidia binary driver and a new kernel (2.6.15-27-686 with SMP enabled). I changed the driver from nv to nvidia but then xorg gave me the api error. After a reboot everything worked fine.
-- 6.06.1 upgrade of nvidia restricted modules fails https://launchpad.net/bugs/70235 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
