I Actually resolved this. Seemes that an old installation had blacklisted nvidia-updates module from loading.
After removing the blacklist from /etc/modprobe.d the nvidia driver started working again. The installer of the package should check if there exists an blacklist of the module when installing, and remove this. -- You received this bug notification because you are a member of Ubuntu-X, which is subscribed to nvidia-graphics-drivers in Ubuntu. https://bugs.launchpad.net/bugs/1064358 Title: X in failsafe mode after installing Nvidia drivers To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/nvidia-graphics-drivers/+bug/1064358/+subscriptions _______________________________________________ Mailing list: https://launchpad.net/~ubuntu-x-swat Post to : ubuntu-x-swat@lists.launchpad.net Unsubscribe : https://launchpad.net/~ubuntu-x-swat More help : https://help.launchpad.net/ListHelp