Ok, the problem seems to be that nouveau gets loaded even though it's
blacklisted. Seems like it somehow found it's way into the initrd image.

sudo rm /lib/modules/3.0.0-5-generic/kernel/drivers/gpu/drm/nouveau/nouveau.ko  
                                                                                
                               
sudo update-initramfs -k $(uname -r) -u
sudo shutdown -r now

and the nvidia driver works again, but that's not much of a
workaround...

Also, someone please reassign this bug to whatever broke this.

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https://bugs.launchpad.net/bugs/811701

Title:
  Nvidia driver unfunctional in oneiric since 2011-07-17

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