Just installed 12.04. Same issue but worse. Could not get to graphical screens 
at all. Alt-f2 gave me command line. Did updates Nov 10, 2011 and still would 
not fully boot.
Uninstalled 173, installed nvidia-current , finally got to gui, but it used 
default video as it then popped up saying I could install proprietary drivers.
fred@fred-Precise:~$ dpkg-query -l | grep nvidia
rc  nvidia-173                             173.14.30-0ubuntu8                   
   NVIDIA binary Xorg driver, kernel module and VDPAU library
ii  nvidia-common                          1:0.2.35                             
   Find obsolete NVIDIA drivers
ii  nvidia-current                         285.05.09-0ubuntu1                   
   NVIDIA binary Xorg driver, kernel module and VDPAU library
ii  nvidia-current-updates                 285.05.09-0ubuntu1                   
   NVIDIA binary Xorg driver, kernel module and VDPAU library
ii  nvidia-settings                        280.13-0ubuntu4                      
   Tool of configuring the NVIDIA graphics driver
ii  nvidia-settings-updates                280.13-0ubuntu1                      
   Tool of configuring the NVIDIA graphics driver

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https://bugs.launchpad.net/bugs/876499

Title:
  Incorrect Nvidia driver installed by checking 3rd party box

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