I am too having this same error. I also have the linux-restricted-
modules-generic package installed. My xorg.log has the same error
message

FATAL: Error running install command for nvidia
(EE) NVIDIA(0): Failed to load the NVIDIA kernel module
(EE) NVIDIA(0): *** ABORTING ***
(EE) Screen(s) found, but none have a usable configuration
Fatal server error: no screens found

somebody please help!

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error running install command for nvidia with 2.6.20-15
https://bugs.launchpad.net/bugs/106895
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