The log file states that you still have the xserver running. I'm
assuming it's from a previous try. If it's not, make sure you stopped
the /etc/init.d/gdm .

As for not able to compile the kernel modules:
- double check that you've installed build-essential.
- make sure you've installed your linux-header package variant.
- make sure you haven't installed the nvidia-kernel-common package or any 
variant of the nvidia-glx package.

It _should_ work after that. If it doesn't we'll really need the output
of the installer. You can run "sudo sh NVIDIA-
Linux-x86_64-173.14.05-pkg2.run --ui=none > debug" to write the terminal
output to a file called "debug".

-- 
nvidia-glx-new driver displays white screen of death
https://bugs.launchpad.net/bugs/208718
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