I have the same problem after upgrade to Gutsy.

If I don't stop Xgl with ~/.config/xserver-xgl/disable I always get "You
don't appear to be using the NVIDIA X driver. Please edit your X
configuration file (just run 'nvidia-xconfig' as root), and restart the
X server." and I'm not able to set correctly 2 monitors.

I have Geforce GO 7400 and use "new" driver.

** Attachment added: "xorg.conf"
   http://launchpadlibrarian.net/10278254/xorg.conf

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nvidia dual head twinview (pseudo-xinerama): gnome-panel and maximized windows 
span both heads on first login
https://bugs.launchpad.net/bugs/139313
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