I'll chime in as well.  I had the same problem.

And I had to downgrade to fix it.

As far as I'm concerned, this should be "critical".  It renders X
useless.

See 
https://lists.ubuntu.com/archives/ubuntu-users/2006-August/091420.html


----------------------------------------------------------
My Specs:

Ubuntu 6.06.1
Kernel 2.6.15-26-686
linux-restricted-modules-2.6.15-26-686
nvidia-glx
--
NVIDIA 6800 GT - 256 MB RAM
AMD 64 3500+ CPU
2.GB RAM
----------------------------------------------------------

Xorg.0.log & Xorg.0.log.old attached

-- 
xorg-server 1:1.0.2-0ubuntu10.3 breaks X: "no screens found"
https://launchpad.net/bugs/57153

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