There's actually a HUGELY simple fix for this.
The error message given indicates that xorg.conf is failing to validate
because "Screen" doesn't reference a device, basically.
You can fix this by adding this line to /etc/X11/xorg.conf, under Section
"Screen":
Device "Default Device"
(where "Default Device" is a name already used in xorg.conf, under
Section "Device")
After adding this single line, nvidia-settings can save to xorg.conf
just fine.
--
nvidia-settings crashes when user clicks Save To X Configuration File
https://bugs.launchpad.net/bugs/286424
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